Analysts covering Commercial Metals Company (NYSE:CMC) are optimistically predicting triple-digit earnings per share to of 102.82% over the next 12 months. Presently, with an EPS of $0.671, we can expect an upcoming EPS of $1.36. I am going to look at the latest data on CMC to assess whether this expected growth is reasonable. See our latest analysis for CMC
How is Commercial Metals going to perform in the future?The excitement around Commercial Metals’s growth potential is not unfounded. CMC is covered by 8 analysts who, by consensus, are bullish with earnings estimated to increase from current levels of $0.671 to $1.36 over the next year. This indicates a relatively solid earnings per share growth rate of 102.82% over the next 1-2 years, which is an optimistic outlook in the near term. In the same period we will see the revenue increase from $4,816M $5,237M
Is the growth built on solid basis?The past can be an insightful indicator for future performance for a stock. We can determine whether this level of expected growth is excessive or whether the company continues to go from strength to strength. However, CMC’s earnings growth last year was negative, at -7.64%. Although its past performance illustrates a different picture to earnings growth moving forward, it could also mean CMC is growing off a lower base, meaning a higher growth rate is easier to achieve. This sign change in growth could indicate a turnaround initiative.
For CMC, I’ve compiled three relevant aspects you should further research:
1. Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.
2. Valuation: What is CMC worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether CMC is currently mispriced by the market.
3. Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of CMC? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!