What Analysts Recommend for Commercial Metals Company
Commercial Metals Company
Commercial Metals Company (CMC) is the lowest-ranked of the five US-based steelmakers that we’re covering in this series. The stock has received a “strong buy” rating from one analyst, while two analysts have given it a “buy” rating. Overall, 30% of analysts polled by Thomson Reuters on September 29 have given Commercial Metals Company a “buy” or higher rating. 20% of analysts have a “sell” rating on CMC, while the remaining 50% of analysts have given the stock a “hold” or some equivalent.
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Commercial Metals Company carries a mean consensus price target of $20.11, which represents a 5.7% upside over its September 29 closing prices.
Commercial Metals Company produces steel through mini-mills and is among the leading rebar (or reinforcing bars) suppliers in the US. Nucor (NUE) is the largest rebar supplier in North America. The product is used in the nonresidential construction industry. While flat steel prices have shown weakness recently, we’ve seen strength in rebar prices. Rebar imports also fell steeply last month. You can read A Deep Dive into Steel Import Data for August 2017 for a detailed overview of August steel imports data.
CMC also has marketing operations. However, the company is now exiting its International Marketing and Distribution segment. Earlier this year, the company completed the sale of CMC Cometals. By exiting the marketing and trading business, CMC will be able to focus on its steel manufacturing business (XME) (STLD).
In the next article, we’ll see how analysts are rating ArcelorMittal (MT).