Bear of the Day: Commercial Metals (CMC)

With the market rocketing to all-time highs, it can feel like any stock you decide to invest in will go straight up. That could not be further from the case. There are copious risks still out there in the market. When the euphoria following the election wears off, the tide will come in. When the pullback arrives, you want to be ready to buy stocks with strong earnings trends on the dip. You’ll also want to avoid stocks which have seen their earnings move in the wrong direction.Today’s Bear of the Day is a stock that has seen its earnings picture deteriorate. The trend coming from analysts across Wall Street is to revise expectations to the downside. That’s not what you want to see over the long run as an investor. Today’s Bear of the Day is Commercial Metals (CMC). Commercial Metals Company manufactures, recycles, and fabricates steel and metal products, and related materials and services in the United States, Poland, China, and internationally. 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. Commercial Metals is currently a Zacks Rank #5 (Strong Sell). The reason for the unfavorable rank is recent negative earnings revisions coming from analysts all over Wall Street. Over the last thirty days, three analysts have cut expectations for the current year while two have done so for next year. The negative revisions have dropped our Zacks Consensus Estimate for the current year from $5.59 to $4.35 while next year’s number is off from $6.00 to $5.42. The good news for long-term investors is that 24% earnings growth is still forecast for next year.Image Source: Zacks Investment ResearchThe Steel – Producers industry ranks in the Bottom 9% of our Zacks Industry Rank. There are no stocks in that industry which are in the good graces of our Zacks Rank. However, there are some stocks which are Zacks Rank #3 (Hold) stocks. These include Legato Merger (ASTL) and ArcelorMittal (MT). 5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report ArcelorMittal (MT): Free Stock Analysis Report Commercial Metals Company (CMC): Free Stock Analysis Report Algoma Steel Group Inc. (ASTL): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks