Commercial Metals Company (CMC): From Top to Bottom

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 $23.84, up from yesterday’s close by 3.47%. 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 $2.81 Billion. That value represents a market adjusting for revenues that have been growing by 24.59 % 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 -$88.61 Million over the past twelve months. Generally speaking, earnings are expected to grow in coming quarters. Analysts are forecasting earnings of $0.27 on a per share basis this quarter. Perhaps, that suggests something about why 6.59% 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 $25.90. It is now trading 2.06% off that level. The stock is trading $22.89 its 50-day moving average by -0.95%. The stock carved out a 52-week low down at $17.05.

In recent action, Commercial Metals Company (CMC) has made a move of -3.05% 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 13.62, 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 3.85% with $114.86 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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