Stock of the Day

April 1, 2020

Commercial Metals (CMC)

$64.96
-$0.42 (-0.6%)
Market Cap: $7.23B

About Commercial Metals

Commercial Metals Company manufactures, recycles, and fabricates steel and metal products, and related materials and services in the United States, Poland, China, and internationally. It operates through two segments, North America and Europe. The company processes and sells ferrous and nonferrous scrap metals to steel mills and foundries, aluminum sheet and ingot manufacturers, brass and bronze ingot makers, copper refineries and mills, secondary lead smelters, specialty steel mills, high temperature alloy manufacturers, and other consumers. It also manufactures and sells finished long steel products, including reinforcing bar, merchant bar, light structural, and other special sections, as well as semi-finished billets for rerolling and forging applications. In addition, the company provides fabricated rebar used to reinforce concrete primarily in the construction of commercial and non-commercial buildings, hospitals, convention centers, industrial plants, power plants, highways, bridges, arenas, stadiums, and dams; sells and rents construction-related products and equipment to concrete installers and other businesses; and manufactures and sells strength bars for the truck trailer industry, special bar steels for the energy market, and armor plates for military vehicles. Further, it manufactures rebars, merchant bars, and wire rods; and sells fabricated rebars, wire meshes, fabricated meshes, assembled rebar cages, and other fabricated rebar by-products to fabricators, manufacturers, distributors, and construction companies. The company was founded in 1915 and is headquartered in Irving, Texas.

Today's Trend

Commercial Metals Company (NYSE: CMC) shares have edged lower despite a strong fiscal fourth-quarter earnings report, suggesting investors may be taking profits and weighing the company’s cyclical outlook against its earnings momentum.

  • Fourth-quarter results exceeded expectations. CMC reported adjusted EPS of $2.09, above the roughly $1.95–$1.97 consensus, while revenue rose 25.7% year over year to $2.66 billion, exceeding estimates by approximately $90 million. CMC Reports Fourth Quarter and Full Year Fiscal 2026 Results
  • Full-year profitability improved substantially. Fiscal 2026 net earnings reached $655.8 million, while consolidated core EBITDA increased to $1.4 billion from $837.3 million in fiscal 2025, reinforcing the company’s operating and cash-generation momentum. CMC closes out fiscal year with summer profits
  • Management sees durable end-market demand. CMC highlighted strong demand from data centers and semiconductor factories, while its recycling, steel and construction-products businesses supported summer profitability. These trends could benefit volumes and infrastructure-related demand. Commercial Metals Sees Strong Demand From Data Centers, Chip Factories
  • Analysts and market commentary remain mixed. Zacks characterizes CMC as a strong growth stock, and management’s earnings-call commentary signaled further growth. However, other analysis considers the shares insufficiently attractive even as fundamentals improve, reflecting valuation and steel-cycle concerns. Here's Why Commercial Metals is a Strong Growth Stock
  • The muted reaction may reflect cyclical and valuation risk. Despite the earnings beat and stronger outlook, investors may be concerned about metal-price volatility, construction demand and whether the improvement can persist. CMC’s shares remain below their 50-day and 200-day moving averages, indicating lingering technical pressure. Commercial Metals Company: Still Not Attractive but Getting Better
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