Commercial Metals (CMC) Hits 52

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Commercial Metals (CMC) Hits 52

Commercial Metals Company (CMC Free Report) scaled a fresh 52-week high of $30.56 during the Mar 9 trading session, before retracting to close at $29.29. Solid construction and infrastructure activities in the United States and Poland as well as higher steel prices have contributed to this price appreciation.

Commercial Metals has a trailing four-quarter average earnings surprise of 37.53%.

Share Price Performance

The company’s shares have appreciated 95.5% over the past year compared with the industry’s growth of 118.3%.

Driving Factors

Commercial Metals forecasts solid steel demand in fiscal 2021, prompted by recovery in the residential and construction sector in the United States and Central Europe. This is likely to translate into rebar demand and improved long product steel demand in the near term. In fact, government stimulus measures and pick-up in demand are driving steel prices higher. Apart from this, strong fabrication backlogs will spur domestic demand for rebar. Demand for merchant and wire rod products is also robust, aided by recovery in automotive and industrial production in Poland and Germany. These factors position the company well for near-term growth.

Commercial Metals’ ongoing network-optimization efforts in North America and expanded domestic mill network will yield additional margin and working capital benefits in the upcoming period. Its capacity-curtailment initiative at the West Coast fabrication facility in order to support the company’s network optimization efforts will also provide cost benefits. The company is implementing price rise across its mill products in response to rapidly-rising scrap costs. Moreover, Commercial Metals’ strong liquidity, financial position and focus on reducing debt bode well.

Zacks Rank & Stocks to Consider

Commercial Metals currently carries a Zacks Rank #3 (Hold).

Better-ranked stocks in the basic materials space include Impala Platinum Holdings Limited (IMPUY Free Report) , Fortescue Metals Group Limited (FSUGY Free Report) and BHP Group (BHP Free Report) . All of these stocks sport a Zacks Rank #1 (Strong Buy), at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Impala Platinum has an expected earnings growth rate of 195.9% for the current fiscal year. The company’s shares have surged 84% in the past year.

Fortescue has a projected earnings growth rate of 84.3% for the current fiscal year. The company’s shares have soared 182% in a year’s time.

BHP Group has an estimated earnings growth rate of 65.6% for the current fiscal year. The company’s shares have appreciated 75% over the past year.

5 Stocks Set to Double

Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.

Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.

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