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    Commercial Metals (CMC): Evaluating Valuation After Analysts Boost Earnings and Revenue Forecasts

    Simply Wall St·10/11/2025 11:19:27
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    Commercial Metals (CMC) has attracted attention after analysts raised estimates for the company’s upcoming quarterly earnings, expecting both improved revenues and profitability. This growing optimism comes as anticipation builds ahead of the official report.

    See our latest analysis for Commercial Metals.

    Commercial Metals has made headlines recently, not just for rising earnings expectations, but also after the company received an adverse legal ruling in ongoing litigation with Pacific Steel Group. While the legal setback weighed on sentiment in the short term, CMC’s share price has climbed 15.9% year-to-date, and its 12-month total shareholder return stands at 8%, helping extend a robust 184% five-year total return. This momentum signals that investors remain interested, balancing potential growth with new risks in the mix.

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    Given analyst optimism and a recent stock price surge, does Commercial Metals still trade at a discount? Or has the market already priced in future growth, leaving little room for further upside?

    Most Popular Narrative: 7.1% Undervalued

    With the most popular narrative fair value of $61.35 set above the latest close of $56.97, the gap suggests potential for upside if forecasted growth materializes. All eyes are on whether momentum from strategic projects and operational gains will justify this premium.

    CMC's strategic initiatives, particularly the Transform, Advance, and Grow (TAG) program, are projected to generate an additional $25 million in benefits over the rest of fiscal 2025 and promise further enhancements in the coming years. These improvements are likely to permanently improve margins and increase earnings.

    Read the complete narrative.

    Hungry for the details driving this optimistic price tag? The secret sauce includes bold expansion moves and financial targets usually reserved for market disruptors. Want to know which financial levers and business bets underpin this valuation? The answers just might surprise you.

    Result: Fair Value of $61.35 (UNDERVALUED)

    Have a read of the narrative in full and understand what's behind the forecasts.

    However, unexpected construction slowdowns or new competitor capacity could put pressure on margins and challenge whether Commercial Metals can deliver the growth analysts expect.

    Find out about the key risks to this Commercial Metals narrative.

    Build Your Own Commercial Metals Narrative

    If the narrative above doesn't quite fit your perspective, you can dive into the data and shape your own view in just a few minutes, Do it your way

    A great starting point for your Commercial Metals research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.