Published on 14 Jun 2022 on Zacks via Yahoo Finance

Here's Why Commercial Metals (CMC) is an Attractive Bet Now

Commercial Metals Company CMC looks attractive at the moment, aided by solid finished steel demand stemming from robust construction and infrastructure activities and higher steel prices. The company’s Europe segment is benefiting from solid growth in the Polish construction market while new contract wins and strong construction backlog continue to support the North America segment. The company’s network optimization efforts and ramping up of new steel mills will continue to drive growth.

Factors Detailing

Positive Earnings Surprise History: Commercial Metals, a Zacks Rank #1 (Strong Buy) stock, has a trailing four-quarter earnings surprise of 15.9%, on average.Positive Growth Expectations: The company’s earnings estimate for fiscal 2022 is pegged at $8.75, suggesting year-over-year growth of around 147.8%.Strong Financials: The company’s strong liquidity, financial position and focus on reducing debt by a strategic capital allocation approach will stoke growth. The company’s net debt to trailing 12-month adjusted EBITDA ratio is pegged at 0.5 at the end of the fiscal second quarter, while net debt to capitalization is just 14%. This further underscores the company's ability to meet debt obligations. It had total liquidity of $1.5 billion at the end of the fiscal second quarter.Price Performance: The company’s shares have gained 12.4% in the past year against the industry’s decline of 10.4%.