Commercial Metals (NYSE:CMC) Stock Rating Lowered by Wall Street Zen

Commercial Metals (NYSE:CMC) was downgraded by Wall Street Zen from a “buy” rating to a “hold” rating in a research report issued on Saturday, Wall Street Zen reports.

A number of other analysts have also recently commented on CMC. Zacks Research upgraded shares of Commercial Metals from a “strong sell” rating to a “hold” rating in a research note on Monday, July 13th. BMO Capital Markets upped their price target on shares of Commercial Metals from $77.00 to $80.00 and gave the company a “market perform” rating in a research note on Thursday, August 6th. Wells Fargo & Company restated an “underperform” rating and set a $70.00 price target on shares of Commercial Metals in a research note on Friday. BNP Paribas Exane raised shares of Commercial Metals from a “neutral” rating to an “outperform” rating and set a $75.00 price target for the company in a report on Wednesday, July 8th. Finally, JPMorgan Chase & Co. lowered their price objective on shares of Commercial Metals from $83.00 to $80.00 and set an “overweight” rating for the company in a research note on Friday, October 9th. Ten investment analysts have rated the stock with a Buy rating, four have given a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $80.45.

Commercial Metals Price Performance

Shares of NYSE CMC opened at $64.95 on Friday. Commercial Metals has a fifty-two week low of $55.70 and a fifty-two week high of $84.87. The company has a market cap of $7.19 billion, a PE ratio of 11.07, a P/E/G ratio of 0.25 and a beta of 1.53. The company has a debt-to-equity ratio of 0.71, a quick ratio of 1.66 and a current ratio of 2.34. The business has a 50-day simple moving average of $66.80 and a two-hundred day simple moving average of $68.35.

Commercial Metals (NYSE:CMC) last posted its quarterly earnings data on Thursday, October 15th. The basic materials company reported $2.09 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.95 by $0.14. Commercial Metals had a net margin of 6.98% and a return on equity of 17.00%. The firm had revenue of $2.66 billion for the quarter, compared to the consensus estimate of $2.56 billion. During the same quarter in the prior year, the company posted $1.37 earnings per share. The company’s revenue for the quarter was up 25.7% compared to the same quarter last year. As a group, equities analysts expect that Commercial Metals will post 7.67 EPS for the current fiscal year.

Commercial Metals declared that its Board of Directors has initiated a stock repurchase program on Wednesday, August 5th that permits the company to repurchase $600.00 million in shares. This repurchase authorization permits the basic materials company to reacquire up to 7.5% of its shares through open market purchases. Stock repurchase programs are typically an indication that the company’s management believes its shares are undervalued.

Insider Activity at Commercial Metals

In other news, Director John McPherson bought 1,390 shares of the company’s stock in a transaction that occurred on Thursday, August 13th. The shares were purchased at an average price of $71.92 per share, for a total transaction of $99,968.80. Following the completion of the transaction, the director directly owned 21,927 shares in the company, valued at approximately $1,576,989.84. This represents a 6.77% increase in their ownership of the stock. The purchase was disclosed in a filing with the SEC, which is accessible through the SEC website. 0.62% of the stock is owned by company insiders.

Hedge Funds Weigh In On Commercial Metals

A number of institutional investors have recently bought and sold shares of CMC. BlackRock Inc. purchased a new position in shares of Commercial Metals during the 2nd quarter valued at approximately $954,989,000. Bank of America Corp DE lifted its stake in shares of Commercial Metals by 87.4% in the 1st quarter. Bank of America Corp DE now owns 1,631,213 shares of the basic materials company’s stock valued at $100,205,000 after purchasing an additional 760,985 shares during the period. Bank of New York Mellon Corp boosted its holdings in Commercial Metals by 0.9% during the first quarter. Bank of New York Mellon Corp now owns 977,024 shares of the basic materials company’s stock worth $60,019,000 after buying an additional 8,911 shares in the last quarter. Van ECK Associates Corp boosted its holdings in Commercial Metals by 180.2% during the second quarter. Van ECK Associates Corp now owns 786,142 shares of the basic materials company’s stock worth $49,330,000 after buying an additional 505,599 shares in the last quarter. Finally, Jupiter Topco LLC purchased a new stake in Commercial Metals during the second quarter worth $36,800,000. 86.90% of the stock is owned by hedge funds and other institutional investors.

Commercial Metals News Roundup

Here are the key news stories impacting Commercial Metals this week:

• Positive Sentiment: 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
• Positive Sentiment: 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
• Positive Sentiment: 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
• Neutral Sentiment: 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
• Negative Sentiment: 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

Commercial Metals Company Profile

Commercial Metals Company (NYSE: CMC) is a steel and metals manufacturer, fabricator and recycler headquartered in Irving, Texas. Founded in 1915, the company operates a vertically integrated business that collects and processes ferrous scrap, produces steel and supplies products used in construction and infrastructure projects.

CMC’s product portfolio includes reinforcing bar, merchant bar, wire rod, structural components and other steel products. Through its fabrication and construction services, the company also processes and prepares reinforcing steel for commercial, industrial, transportation and other building projects.