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Commercial Metals Company Outlook

Introduction

Commercial Metals Company (CMC) is a vertically-integrated, global low-cost metals recycling and manufacturing company. In my coverage of CMC, I have noted its strong fundamentals, high degree of institutional investment, consistent revenues, and $100 million share buyback plan as indicators of long-term strength. After posting a solid FQ1 report in which it beat on earnings per share, it appears to have a solid 2015 outlook.

But after starting the year trading at $16.18, Commercial Metals Company is now trading in the low $14 range. The reason for this sell-off has primarily been related to a steep decline in the price of steel and continued weakness in the oil sector. Although it has experienced a steep decline in the past few weeks, it remains an attractive investment especially at its current price level.

Steel and Oil Concerns

Steel prices have dropped and this is feeding into the perception that this… Read More …