Core Viewpoint - Value investing remains a preferred strategy for identifying strong stocks, utilizing fundamental analysis to find undervalued companies [2] Company Overview - Commercial Metals (CMC) is currently rated with a Zacks Rank 2 (Buy) and has a Value grade of A, indicating strong potential as a value stock [4] - CMC's current P/E ratio is 12.16, which is lower than the industry average of 12.50, suggesting it may be undervalued [4] - The stock's Forward P/E has fluctuated between a high of 18.74 and a low of 9.50 over the past 52 weeks, with a median of 11.89 [4] Valuation Metrics - CMC has a P/B ratio of 1.59, which is favorable compared to the industry average P/B of 2.07, indicating solid valuation [5] - Over the past year, CMC's P/B ratio has ranged from a high of 1.80 to a low of 1.10, with a median of 1.42 [5] - The P/CF ratio for CMC is 20.49, which is lower than the industry average of 21.47, further supporting the notion of undervaluation [6] - CMC's P/CF has varied from a high of 21.06 to a low of 7.76 over the past year, with a median of 14.56 [6] Investment Outlook - The combination of favorable valuation metrics and a strong earnings outlook positions CMC as one of the market's strongest value stocks [7]

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1] Company Overview: Commercial Metals (CMC) - CMC currently holds a Momentum Style Score of B, indicating a favorable position in momentum investing [2] - The company has a Zacks Rank of 1 (Strong Buy), suggesting strong potential for outperformance in the market [3] Performance Metrics - CMC shares have increased by 2.7% over the past week, outperforming the Zacks Steel - Producers industry, which rose by 2.01% [5] - Over the past month, CMC's stock price has changed by 9.37%, while the industry average is 13.47% [5] - In the last quarter, CMC shares have risen by 29.17%, and over the past year, they have gained 53.72%, significantly outperforming the S&P 500's increases of 3.46% and 14.89%, respectively [6] Trading Volume - CMC's average 20-day trading volume is 1,194,848 shares, which serves as a bullish indicator when combined with rising stock prices [7] Earnings Outlook - Recent earnings estimate revisions for CMC show positive trends, with 2 estimates moving higher and none lower, raising the consensus estimate from $5.81 to $7.37 over the past 60 days [9] - For the next fiscal year, 2 estimates have also increased, with no downward revisions during the same period [9] Conclusion - Given the strong performance metrics and positive earnings outlook, CMC is positioned as a 1 (Strong Buy) stock with a Momentum Score of B, making it a compelling option for investors seeking short-term gains [11]

Core Insights - There is a structural shift in corporate leadership with more women taking on top roles, leading to improved performance in innovation, operational agility, and shareholder returns [2] - Women-led organizations are demonstrating disciplined execution and better capital allocation, reinforcing investor confidence in sustainable business models [2] Group 1: Women Entrepreneurs and Business Growth - The number of women-owned firms grew 44% faster than male-owned businesses from 2019 to 2024, indicating a significant impact on the U.S. business landscape [4] - 56% of women entrepreneurs reported higher revenues in 2025 compared to 2024, with 66% expecting growth in 2026 despite macroeconomic uncertainty [4] - Women entrepreneurs are increasingly accessing growth capital, with 20% utilizing debt and 32% equity funding in the past year [4] Group 2: Funding Challenges - Women-led startups receive only about 2% of venture capital funding in the U.S. and Europe, highlighting a significant funding disparity [5] - Biases in the investment community contribute to this disparity, with female entrepreneurs often facing risk-focused questions compared to opportunity-focused questions for male entrepreneurs [5] Group 3: Investment Opportunities in Women-Led Companies - Companies like The Estee Lauder Companies Inc. (EL), Commercial Metals Company (CMC), Arista Networks, Inc. (ANET), and FuelCell Energy, Inc. (FCEL) exemplify strong leadership and strategic vision, making them attractive investment opportunities [7] - Estee Lauder Companies reported net sales of $3.48 billion, up 4% year over year, with adjusted earnings per share rising to 32 cents from 14 cents [12] - Commercial Metals Company reported net earnings of $177.3 million on net sales of about $2.1 billion, marking a significant improvement from a net loss in the prior-year period [14] - Arista Networks reported revenue of approximately $2.308 billion, up about 27.5% year over year, with non-GAAP net income of $962.3 million [17] Group 4: Leadership Contributions - Maria Black's leadership at Automatic Data Processing has driven cloud-based HCM innovation and steady revenue growth [3] - Jody Absher at Commercial Metals Company has strengthened governance and legal strategy, contributing to the company's operational success [13][15] - Jayshree V. Ullal's leadership at Arista has transformed the company into a leader in cloud networking, with a focus on innovation and strategic partnerships [16][19] - Karen A. Farrell at FuelCell Energy is enhancing the company's human capital framework, crucial for scaling operations in the clean energy sector [20][22]

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Core Insights - Commercial Metals Company (CMC) reported strong first-quarter fiscal 2026 results, with year-over-year increases in revenue and earnings, surpassing Zacks Consensus Estimates [1][5][11] - CMC shares have increased by 51.6% over the past year, outperforming the industry and broader market indices [1][3] Financial Performance - CMC achieved revenues of $2.12 billion, reflecting an 11% year-over-year growth, driven by demand in the North America Steel Group and Construction Solutions Group [7] - Earnings per share surged by 142% year-over-year to $1.84, exceeding the Zacks Consensus Estimate of $1.55 [11] - North America Steel margins reached multi-year highs, while Europe Steel Group faced challenges, with adjusted EBITDA margins dropping from 12.3% to 4.4% due to import impacts [8][9] Strategic Acquisitions - CMC completed two acquisitions in December 2025, which are expected to support results in Q2 fiscal 2026 despite incurring acquisition-related expenses [13][14] - The acquisitions are projected to generate annual run-rate synergies of $25-$30 million by year three [18] Market Position and Outlook - The Zacks Consensus Estimate for fiscal 2026 sales is $8.54 billion, indicating a 9.6% year-over-year increase, with earnings expected to rise by 127.5% to $7.12 per share [15] - CMC's long-term growth strategy includes the Transform, Advance, Grow Program, aiming for an annualized EBITDA benefit of $150 million in fiscal 2026 [18] Valuation and Investment Consideration - CMC's valuation is considered attractive compared to peers, with a strong stock performance and improved fiscal results [20][23] - The company holds a Zacks Rank 1 (Strong Buy), suggesting it may be a favorable time to consider adding CMC stock to investment portfolios [23]

Core Viewpoint - The article emphasizes the importance of identifying growth stocks with strong financial growth potential, highlighting Commercial Metals (CMC) as a recommended stock due to its favorable growth metrics and Zacks Rank [2][9]. Earnings Growth - Commercial Metals has a historical EPS growth rate of 0.4%, but its projected EPS growth for this year is expected to be 127.4%, significantly surpassing the industry average of 84.5% [4]. Asset Utilization Ratio - The company has an asset utilization ratio (sales-to-total-assets ratio) of 1.06, indicating it generates $1.06 in sales for every dollar in assets, which is higher than the industry average of 0.9, showcasing better efficiency [5]. Sales Growth - Commercial Metals is projected to achieve a sales growth of 9.6% this year, compared to the industry average of 4.9%, indicating strong sales performance [6]. Earnings Estimate Revisions - There has been a positive trend in earnings estimate revisions for Commercial Metals, with the Zacks Consensus Estimate for the current year increasing by 0.9% over the past month, suggesting favorable market sentiment [7]. Overall Positioning - With a Growth Score of B and a Zacks Rank of 1, Commercial Metals is well-positioned for outperformance, making it an attractive option for growth investors [9].

Group 1: Company Overview - Commercial Metals Company (CMC) is a significant player in the steel and metal industry, focusing on the production and recycling of steel and metal products, primarily in North America and Europe [1] - CMC serves various sectors including construction, manufacturing, and infrastructure, competing with industry giants like Nucor Corporation and Steel Dynamics [1] Group 2: Financial Performance - In the first quarter of fiscal 2026, CMC reported net earnings of $177.3 million, or $1.58 per diluted share, with adjusted earnings of $206.2 million, or $1.84 per diluted share [3] - The consolidated core EBITDA reached $316.9 million, marking a significant 52% increase year-over-year, with a core EBITDA margin of 14.9% [3] Group 3: Strategic Initiatives - CMC's success is attributed to strong operational execution and commercial discipline, particularly in North America [4] - The company launched several initiatives under its Transform, Advance, and Grow ("TAG") program, aiming for an annualized run-rate EBITDA benefit of $150 million by the end of fiscal 2026 [4] - In December, CMC expanded its growth platform by acquiring CP&P and Foley, investing over $2.5 billion in the precast concrete industry [5] - The company renamed its Emerging Businesses Group to Construction Solutions Group, aligning with its strategic priorities [5] Group 4: Market Outlook - Jefferies set a new price target of $85 for CMC, indicating a potential increase of approximately 19.18% from its trading price of $71.32 at the time [2][6] - The stock's current price is $70.85, reflecting a slight decrease of 3.24% or $2.37, but it has shown resilience with a 52-week high of $75.03 [2]

Core Insights - Commercial Metals Company (CMC) is a prominent player in the metals and construction sector, particularly known for its steel production and recycling operations, primarily in North America [1] Financial Performance - CMC reported an EPS of $1.84 for Q1 fiscal 2026, exceeding the forecast of $1.55, with net earnings of $177.3 million or $1.58 per diluted share [2][6] - The company's revenue reached approximately $2.12 billion, surpassing the estimated $2.05 billion, indicating strong market performance [2][6] - Consolidated core EBITDA grew by approximately 52% year-over-year to $316.9 million, resulting in a core EBITDA margin of 14.9% [3][6] Strategic Initiatives - CMC's growth is supported by its TAG program, which aims for an annualized run-rate EBITDA benefit of $150 million by the end of fiscal 2026 [3] - In December, CMC made significant acquisitions in the precast concrete industry, investing over $2.5 billion, which establishes a substantial growth platform [4] Market Position and Valuation - CMC's P/E ratio is approximately 96.58, indicating a high valuation relative to earnings, while the price-to-sales ratio is about 1.04 and the enterprise value to sales ratio is around 1.08 [5] - The company maintains a debt-to-equity ratio of approximately 0.32 and a current ratio of about 2.78, reflecting strong financial management capabilities [5]

Financial Performance - Net sales for the three months ended November 30, 2025, increased by $210.7 million, or 11%, to $2,120.3 million compared to the corresponding period in 2024[121] - Net earnings for the same period were $177.3 million, a significant improvement from a net loss of $175.7 million in the prior year[121] - Diluted earnings per share for the current period were $1.58, compared to a loss of $1.54 per share in the previous year[121] - Net earnings for the three months ended November 30, 2025, increased year-over-year primarily due to a litigation-related expense of approximately $265.0 million recognized in the prior period and improved steel products metal margins[122] Acquisitions and Investments - The company completed the acquisition of Concrete Pipe and Precast, LLC on December 1, 2025, enhancing its precast concrete solutions portfolio[100] - The acquisition of Foley Products Company, LLC was finalized on December 15, 2025, further strengthening the company's position in the precast concrete market[101] - The company anticipates 2026 capital spending of approximately $625 million, primarily for the construction of facilities in West Virginia[143] Debt and Financing - The company issued $1.0 billion of 5.750% senior unsecured notes due November 2033 and $1.0 billion of 6.000% senior unsecured notes due December 2035, with aggregate issuance costs of approximately $5.5 million[99] - The company increased its revolving credit facility borrowing capacity from $600.0 million to $1.0 billion, extending the maturity date to December 17, 2030[103] - Interest expense increased by $13.5 million due to a higher borrowing base and committed financing fees of $11.6 million related to the Bridge Facility[124] - The company received net proceeds of $2.0 billion from the issuance of the 2033 Notes and 2035 Notes, with aggregate issuance costs of approximately $5.5 million[152] Operational Performance - Selling, General and Administrative (SG&A) expenses rose by $17.8 million, driven by $13.4 million in transaction expenses related to the CP&P and Foley Acquisitions[123] - Net sales to external customers in the North America Steel Group segment increased by $142.4 million, or 9%, driven by a 16% increase in the average selling price per ton of steel products[128] - Adjusted EBITDA for the North America Steel Group increased by $107.7 million, or 58%, primarily due to a 27% year-over-year increase in steel products metal margin per ton[129] - Net sales in the Construction Solutions Group segment increased by $28.9 million, or 17%, primarily due to increased demand from the Tensar division and CMC Construction Services[130] - Net sales to external customers in the Europe Steel Group segment increased by $38.2 million, or 18%, partly due to a 16% increase in tons shipped[132] - Adjusted EBITDA in the Europe Steel Group decreased by $14.9 million, or 58%, primarily due to changes in government assistance payments related to rising carbon emissions costs[133] - Corporate and Other adjusted EBITDA loss decreased by $330.4 million, or 86%, due to a $350.0 million contingent litigation-related loss recognized in the prior period[134] Cash Flow and Commitments - For the three months ended November 30, 2025, cash from operating activities decreased by $112.5 million due to a $36.3 million increase in cash used by accounts payable and a $57.0 million decrease in cash provided by accounts receivable[150] - Capital expenditures increased by $7.3 million year-over-year, primarily due to the construction of the fourth micro mill[151] - Material cash commitments primarily consist of long-term debt obligations, leases, and acquisition-related commitments, with no significant changes since the 2025 Form 10-K[154] - The company maintains stand-by letters of credit totaling $46.5 million, with $1.0 million reducing availability under the Revolver[155] Risks and Legislative Changes - The company is subject to risks from macroeconomic conditions, including potential impacts from tariffs on steel imports, which could affect pricing and profitability[107][108] - Recent tax legislation updates include the expansion of bonus depreciation and accelerated expensing of research and development costs, which have been incorporated into the company's fiscal 2026 tax provision[111] Forward-Looking Statements - Forward-looking statements indicate expectations regarding the benefits of acquisitions, economic conditions, and operational capabilities, with no assurance that these expectations will be met[157]

Financial Data and Key Metrics Changes - CMC reported net earnings of $177.3 million, or $1.58 per diluted share, compared to a net loss of $175.7 million in the prior year period [26] - Adjusted earnings for the quarter totaled $206.2 million, or $1.84 per diluted share, compared to $86.9 million in the prior year period [27] - Consolidated Core EBITDA of $316.9 million grew by over 50% from a year ago, reaching its highest level in two years [7][27] - Core EBITDA margin expanded to 14.9%, reflecting improvements year-over-year and sequentially [7] Business Line Data and Key Metrics Changes - North American Steel Group generated Adjusted EBITDA of $293.9 million for the quarter, with an EBITDA margin of 17.7%, up from 12.3% in the prior year [27][28] - Construction Solutions Group net sales grew by 17% year-over-year to $198.3 million, with Adjusted EBITDA increasing by 75% to $39.6 million [28][29] - Europe Steel Group reported adjusted EBITDA of $10.9 million, down from $25.8 million in the prior year, primarily due to a lower CO2 credit [30][31] Market Data and Key Metrics Changes - Shipments of finished steel were virtually unchanged year-over-year, with a less than 1% decline from the previous quarter [12] - The Dodge Momentum Index increased by approximately 50% year-over-year, indicating substantial pent-up demand in non-residential markets [13] - The commercial segment grew by 57% year-over-year, while institutional projects increased by 37% [13] Company Strategy and Development Direction - CMC's strategic focus is on transforming into a stronger organization with higher, more stable margins and returns on capital [5] - The TAG initiative aims to drive operational and commercial excellence, targeting a permanent improvement in margins and cash flows [19][20] - Recent acquisitions of CP&P and Foley Products are expected to broaden CMC's commercial portfolio and enhance financial performance [22][23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to absorb new supply in the market due to stable demand conditions [43] - The company anticipates a modest decline in consolidated Core EBITDA in Q2 due to seasonal trends, but expects contributions from the precast business to offset some of this decline [36] - Management remains optimistic about long-term demand drivers, including infrastructure investment and energy generation [14] Other Important Information - CMC's effective tax rate was 3.1% in Q1, with expectations of a full-year rate between 5% and 10% for fiscal 2026 [34] - The company plans to spend approximately $625 million in capital expenditures for fiscal 2026, focusing on growth investments [35] Q&A Session Summary Question: Insights on CP&P and Foley acquisitions - Management noted positive surprises from the acquisitions, with strong cultural alignment and potential for synergies [40][41] Question: Outlook for North American metal margins - Management is not overly concerned about new supply and expects stable margins, with some seasonal fluctuations [43][44] Question: Seasonal impacts on volumes - Management anticipates typical seasonal declines of 5%-10% from Q1 to Q2, despite stronger than expected Q1 volumes [50][51] Question: Update on West Virginia mill ramp-up - The hot commissioning for the West Virginia mill is expected to begin in June, with a ramp-up planned over the following 12 months [52][54] Question: Outlook for precast business - The precast business is expected to contribute about $30 million of EBITDA in Q2, reflecting seasonal impacts [60] Question: Counterparty risk in fabrication business - Management clarified that counterparty risk is being actively managed to ensure margin preservation [70][72] Question: Impact of CBAM on European pricing - Management expects CBAM to gradually benefit pricing, with significant effects anticipated throughout 2026 [75][76]