Commercial Metals Company (CMC): What’s the Story?

Commercial Metals Company (CMC) is an interesting player in the Basic Materials space, with a focus on Steel & Iron. The stock has been active on the tape, currently trading at $21.32, down from yesterday’s close by -0.70%. Given the stock’s recent action, it seemed like a good time to take a closer look at the company’s recent data.

Fundamental Analysis

Commercial Metals Company (CMC) currently trades with a market capitalization of $2.50 Billion. That value represents a market adjusting for revenues that have been growing by 24.09 % on a quarterly year/year basis as of the company’s last quarterly report.

You can get a sense of how sustainable that is by a levered free cash flow of -$38.65 Million over the past twelve months. Generally speaking, earnings are expected to grow in coming quarters. Analysts are forecasting earnings of $0.18 on a per share basis this quarter. Perhaps, that suggests something about why 6.32% of the outstanding share supply is held by institutional investors.

Technical Analysis

No analysis is ever complete without a thorough survey of a stock’s technical behavior. Looking at the stock’s movement on the chart, Commercial Metals Company recorded a 52-week high of $23.28. It is now trading 1.96% off that level. The stock is trading $19.94 its 50-day moving average by -1.38%. The stock carved out a 52-week low down at $17.05.

In recent action, Commercial Metals Company (CMC) has made a move of +7.46% over the past month, which has come on weak relative transaction volume. Over the trailing year, the stock is underperforming the S&P 500 by 19.03, and it’s gotten there by action that has been more volatile on a day-to-day basis than most other stocks on the exchange. In terms of the mechanics underlying that movement, traders will want to note that the stock is trading on a float of 4.84% with $114.89 Million sitting short, betting on future declines. That suggests something of the likelihood of a short squeeze in shares of CMC.

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