4 Analysts Have This To Say About Commercial Metals

Ratings for Commercial Metals CMC were provided by 4 analysts in the past three months, showcasing a mix of bullish and bearish perspectives.

The following table provides a quick overview of their recent ratings, highlighting the changing sentiments over the past 30 days and comparing them to the preceding months.

Insights from analysts' 12-month price targets are revealed, presenting an average target of $62.75, a high estimate of $75.00, and a low estimate of $56.00. A 0.4% drop is evident in the current average compared to the previous average price target of $63.00.

Exploring Analyst Ratings: An In-Depth Overview

The analysis of recent analyst actions sheds light on the perception of Commercial Metals by financial experts. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Commercial Metals. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Providing a comprehensive analysis, analysts offer qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of Commercial Metals compared to the broader market.
• Price Targets: Analysts explore the dynamics of price targets, providing estimates for the future value of Commercial Metals's stock. This examination reveals shifts in analysts' expectations over time.

To gain a panoramic view of Commercial Metals's market performance, explore these analyst evaluations alongside essential financial indicators. Stay informed and make judicious decisions using our Ratings Table.

Stay up to date on Commercial Metals analyst ratings.

About Commercial Metals

Commercial Metals Co operates steel mills, steel fabrication plants, and metal recycling facilities in the United States and manufactures rebar and structural steel, which are key product categories for the nonresidential construction sector. The Company has three operating and reportable segments: North America Steel Group, Europe Steel Group and Emerging Businesses Group.

Key Indicators: Commercial Metals's Financial Health

Market Capitalization Analysis: Positioned below industry benchmarks, the company's market capitalization faces constraints in size. This could be influenced by factors such as growth expectations or operational capacity.

Revenue Challenges: Commercial Metals's revenue growth over 3 months faced difficulties. As of 31 August, 2024, the company experienced a decline of approximately -9.64%. This indicates a decrease in top-line earnings. When compared to others in the Materials sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Net Margin: Commercial Metals's net margin falls below industry averages, indicating challenges in achieving strong profitability. With a net margin of 5.21%, the company may face hurdles in effective cost management.

Return on Equity (ROE): Commercial Metals's ROE stands out, surpassing industry averages. With an impressive ROE of 2.43%, the company demonstrates effective use of equity capital and strong financial performance.

Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of 1.54%, the company showcases effective utilization of assets.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.28.

The Significance of Analyst Ratings Explained

Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.

Analysts may supplement their ratings with predictions for metrics like growth estimates, earnings, and revenue, offering investors a more comprehensive outlook. However, investors should be mindful that analysts, like any human, can have subjective perspectives influencing their forecasts.

Which Stocks Are Analysts Recommending Now?

Benzinga Edge gives you instant access to all major analyst upgrades, downgrades, and price targets. Sort by accuracy, upside potential, and more. Click here to stay ahead of the market.

This article was generated by Benzinga's automated content engine and reviewed by an editor.