Goldman Sachs Group Upgrades Commercial Metals (CMC) to “Buy”

Commercial Metals (NYSE:CMC) was upgraded by investment analysts at Goldman Sachs Group from a “neutral” rating to a “buy” rating in a report issued on Monday, MarketBeat Ratings reports. The firm presently has a $21.00 target price on the basic materials company’s stock. Goldman Sachs Group’s price target would suggest a potential upside of 30.76% from the company’s previous close.

Several other brokerages also recently weighed in on CMC. Citigroup set a $18.00 target price on shares of Commercial Metals and gave the stock a “hold” rating in a report on Tuesday, January 8th. Macquarie set a $21.00 target price on shares of Commercial Metals and gave the stock a “hold” rating in a report on Tuesday, January 8th. Seaport Global Securities reaffirmed a “hold” rating on shares of Commercial Metals in a report on Tuesday, January 8th. ValuEngine downgraded shares of Commercial Metals from a “hold” rating to a “sell” rating in a report on Friday, October 12th. Finally, Longbow Research set a $25.00 target price on shares of Commercial Metals and gave the stock a “buy” rating in a report on Monday, December 3rd. Two equities research analysts have rated the stock with a sell rating, four have given a hold rating, five have assigned a buy rating and one has assigned a strong buy rating to the company. Commercial Metals presently has a consensus rating of “Hold” and a consensus target price of $20.53.

Commercial Metals stock traded up $0.25 during mid-day trading on Monday, hitting $16.06. The stock had a trading volume of 448,117 shares, compared to its average volume of 2,142,342. The company has a market capitalization of $1.90 billion, a P/E ratio of 10.78 and a beta of 1.32. The company has a debt-to-equity ratio of 0.88, a quick ratio of 2.75 and a current ratio of 2.68. Commercial Metals has a one year low of $15.23 and a one year high of $26.72.

Commercial Metals (NYSE:CMC) last issued its earnings results on Monday, January 7th. The basic materials company reported $0.35 earnings per share for the quarter, hitting the consensus estimate of $0.35. The company had revenue of $1.28 billion during the quarter, compared to the consensus estimate of $1.28 billion. Commercial Metals had a net margin of 2.51% and a return on equity of 12.32%. Commercial Metals’s quarterly revenue was up 18.7% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $0.31 EPS. Analysts forecast that Commercial Metals will post 2.15 EPS for the current year.

A number of hedge funds have recently made changes to their positions in the business. Retirement Systems of Alabama lifted its stake in Commercial Metals by 0.9% in the 4th quarter. Retirement Systems of Alabama now owns 152,509 shares of the basic materials company’s stock worth $2,443,000 after purchasing an additional 1,290 shares in the last quarter. Vanguard Group Inc lifted its stake in Commercial Metals by 0.8% in the 3rd quarter. Vanguard Group Inc now owns 10,591,735 shares of the basic materials company’s stock worth $217,343,000 after purchasing an additional 78,875 shares in the last quarter. Vanguard Group Inc. lifted its stake in Commercial Metals by 0.8% in the 3rd quarter. Vanguard Group Inc. now owns 10,591,735 shares of the basic materials company’s stock worth $217,343,000 after purchasing an additional 78,875 shares in the last quarter. Legal & General Group Plc raised its position in shares of Commercial Metals by 1.8% during the 3rd quarter. Legal & General Group Plc now owns 168,437 shares of the basic materials company’s stock valued at $3,456,000 after buying an additional 3,021 shares in the last quarter. Finally, Teachers Advisors LLC raised its position in shares of Commercial Metals by 1.1% during the 3rd quarter. Teachers Advisors LLC now owns 270,435 shares of the basic materials company’s stock valued at $5,549,000 after buying an additional 2,902 shares in the last quarter. Institutional investors and hedge funds own 87.00% of the company’s stock.

About Commercial Metals

Commercial Metals Company manufactures, recycles, and markets steel and metal products, and related materials and services in the United States and internationally. It operates through four segments: Americas Recycling, Americas Mills, Americas Fabrication, and International Mill. The Americas Recycling segment processes and sells 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.

Further Reading: Systematic Risk and Investors

Analyst Recommendations for Commercial Metals (NYSE:CMC)

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