Group 1 - The company announced an amendment to its revolving credit facility, increasing borrowing capacity from $600 million to $1 billion [1] - The maturity date of the revolving credit facility has been extended from October 26, 2029, to December 17, 2030 [1] Group 2 - Commercial Metals Company (CMC) is an innovative solutions provider focused on building a stronger, safer, and more sustainable world [2] - The company operates an extensive manufacturing network primarily located in the United States and Central Europe, offering products and technologies for the global construction sector [2] - CMC's solutions cater to various applications in early-stage construction, including infrastructure, non-residential, residential, industrial, and energy generation and transmission [2]

Market Overview - U.S. stocks are showing strong momentum as major indexes approach record levels, with shallow short-term pauses indicating investor confidence for a positive year-end and transition into the new year [1] - Recent labor and economic updates present a mixed but reassuring picture, suggesting a gradual slowdown in job growth rather than a sharp decline, which may lead policymakers to support employment as the year ends [2] Investment Strategy - Relative price strength is highlighted as a practical strategy for investors, with stocks that have outperformed during year-end often becoming leaders in the following year [3] - Stocks recommended based on relative price strength include Commercial Metals Company (CMC), Illumina (ILMN), Kinross Gold (KGC), Las Vegas Sands (LVS), and Hamilton Insurance Group (HG) [3] Stock Performance and Estimates - Commercial Metals Company (CMC) has a market capitalization of $7.9 billion, with a projected earnings growth of 95.9% for fiscal 2026 and a share price increase of 38.7% over the past year [10][11] - Illumina (ILMN) has a market capitalization of $20.6 billion, with a projected earnings growth of 92.2% for 2025, although shares have decreased by 1.8% in the past year [11][12] - Kinross Gold (KGC) is expected to see a 147.1% year-over-year growth in earnings per share for 2025, with shares increasing by 208% in the past year [12][13] - Las Vegas Sands (LVS) has a market capitalization of $45.3 billion, with a projected earnings growth of 30% for 2025 and a share price increase of 32% over the past year [14] - Hamilton Insurance Group (HG) has a market capitalization of $2.8 billion, with an 18.5% upward revision in earnings estimates for 2025 and a share price increase of 50.9% in the past year [15][16] Screening Parameters - Stocks are screened based on relative price changes over 12 weeks, 4 weeks, and 1 week, focusing on those outperforming the S&P 500 [8] - Stocks must have a current price of at least $5, an average 20-day volume of at least 50,000, and a VGM Score of A or B to qualify for potential investment [10]

Momentum investing revolves around the idea of following a stock's recent trend in either direction. In "long context," investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.Even though momentum is a popular stock characte ...

Core Viewpoint - Commercial Metals Company (CMC) has successfully acquired Foley Products Company for a cash purchase price of $1.84 billion, enhancing its position in the precast concrete market [1]. Group 1: Acquisition Details - The acquisition of Foley Products Company, a leading supplier of precast concrete and pipe products, is aimed at expanding CMC's operations in the Southeast and other regions of the U.S. [2] - Foley operates 18 facilities across nine states and is recognized for its comprehensive portfolio of solutions critical for various infrastructure applications [2]. Group 2: Strategic Implications - The acquisition is expected to create a significant growth platform for CMC, providing opportunities to generate value for customers and shareholders [3]. - With the completion of this acquisition, CMC now operates one of the largest precast concrete businesses in the United States, positioning itself for future growth [3]. Group 3: Company Overview - CMC is an innovative solutions provider focused on building a stronger and more sustainable world, offering products and technologies for the global construction sector [4]. - The company supports early-stage construction across various applications, including infrastructure, non-residential, residential, industrial, and energy generation [4].

Market Overview - The U.S. stock markets ended the week mostly lower, with the Nasdaq Composite and S&P 500 slipping by 1.49% and 0.28% respectively due to a sharp selloff in tech stocks [1] - The Dow Jones Industrial Average gained 1.51% as investors rotated toward value and traditional sectors [1] Federal Reserve Actions - The Federal Reserve cut its key overnight borrowing rate by a quarter-percentage-point, now in the range of 3.5% to 3.75% [2] - This decision was influenced by signs of gradually cooling inflation, aimed at supporting the labor market and stimulating economic growth [2] - The number of Americans filing new applications for unemployment benefits surged to a 4.5-year high of 236,000, indicating a sharp deterioration in the jobs market [2] Stock Performance and Recommendations - Liquidia Corporation (LQDA) shares gained 43.9% since being upgraded to Zacks Rank 2 (Buy) on October 13, outperforming the S&P 500's 4.4% increase [3][6] - The Bank of N.T. Butterfield & Son Limited (NTB) returned 22.7% since its upgrade to Zacks Rank 1 (Strong Buy) on October 7, compared to the S&P 500's 1.5% increase [4] - Western Digital Corporation (WDC) shares advanced 52.8% since its upgrade to Outperform on October 13, significantly beating the S&P 500's 4.4% increase [7] Portfolio Performance - A hypothetical portfolio of Zacks Rank 1 stocks returned +14.3% in 2025, slightly underperforming the S&P 500 index's +14.9% [11] - The Zacks Model Portfolio has outperformed the S&P index by more than 12 percentage points since 1988, with an annualized average return of +23.9% compared to +11.5% for the S&P 500 index [14] Sector-Specific Stocks - Cencora, Inc. (COR) and Fair Isaac Corporation (FICO) returned 18.7% and 18.6% respectively over the past 12 weeks [15] - Johnson & Johnson (JNJ) returned 19.3% over the past 12 weeks, benefiting from investor demand for quality dividend stocks [19]

Industry Overview - The steel industry faced significant price volatility and uneven demand in 2025, influenced by factors such as a slowdown in China, U.S. tariff actions, and fluctuating input costs [1][3] - Steel prices began 2025 weakly, with a peak of nearly $950 per short ton due to a 25% tariff on steel imports, but later fell below $800 per short ton due to weak demand and high output [3] - A recovery in steel prices was observed in Q4 2025, with prices surpassing $900 per short ton, driven by increased demand in construction and automotive sectors [4] Demand Dynamics - China's steel demand weakened due to an economic slowdown, particularly in the real estate sector, which accounts for approximately 40% of its steel consumption [5] - Global steel prices were pressured by oversupply and increased Chinese steel exports, alongside sluggish industrial activity in Europe due to economic challenges [6] - The automotive sector experienced a slowdown in production, impacting steel consumption, while non-residential construction demand remained strong, supported by government infrastructure projects [7][8] Company Performances - Certain steel companies, including Commercial Metals Company (CMC), ArcelorMittal S.A. (MT), Nucor Corporation (NUE), and Steel Dynamics, Inc. (STLD), achieved over 40% gains year-to-date amid the industry's challenges [2][9] - CMC is expanding through acquisitions and price increases, with a focus on growth in North America and a strong financial position [15][16] - ArcelorMittal is enhancing its steel-making capacity and focusing on high-value products, with a significant share price increase of 94.5% in 2025 [17][18] - Steel Dynamics is investing in capacity expansion and has seen strong order activity, with shares rising 50.1% year-to-date [19][21] - Nucor is leveraging strategic investments and acquisitions to boost production capacity, with a share price increase of 40.8% in 2025 [22][23]

Core Insights - Commercial Metals Company (CMC) is a significant player in the steel and metal industry, involved in the production and recycling of steel and metal products, operating in both the U.S. and international markets [1] - Jefferies upgraded CMC's stock from Hold to Buy on December 10, 2025, reflecting a more optimistic outlook, with the stock price at $66.19 at the time of the upgrade [2][6] - CMC is expected to see an 87.5% surge in earnings for fiscal 2026, indicating resilience despite challenges such as tariffs and supply-chain issues [3][6] Market Performance - CMC's current stock price is $66.19, with a slight decrease of 0.57, or approximately -0.85%, and has fluctuated between a low of $65.88 and a high of $66.69 today [4] - Over the past year, CMC's stock has ranged from a high of $68.35 to a low of $37.92, showcasing its market volatility [4] - The company's market capitalization is approximately $7.35 billion, highlighting its significant presence in the industry [5][6] Investor Sentiment - There has been an 8.3% increase in broker ratings for CMC, indicating growing confidence in the company's performance [2] - The trading volume today is 556,594 shares on the NYSE, reflecting strong investor interest [5]

Group 1: Great Lakes Dredge & Dock (GLDD) - Great Lakes Dredge & Dock is the largest provider of dredging services in the US, focusing on maintaining and deepening shipping channels, land reclamation, and storm-damaged coastline restoration [1] - The company has a Zacks Rank of 1 (Strong Buy) and has seen a Zacks Consensus Estimate for its current year earnings increase by 8.1% over the last 60 days [1] - Great Lakes Dredge & Dock has a PEG ratio of 1.9, which is lower than the industry average of 3.1, and possesses a Growth Score of A [2] Group 2: Primoris Services (PRIM) - Primoris Services is one of the largest specialty contractors and infrastructure companies in the United States [2] - The company also carries a Zacks Rank of 1 and has experienced a Zacks Consensus Estimate for its current year earnings increase of 9.1% over the last 60 days [2] - Primoris Services has a PEG ratio of 1.11 compared to the industry average of 3.35, and it holds a Growth Score of A [3] Group 3: Commercial Metals (CMC) - Commercial Metals manufactures, recycles, and markets steel and metal products, along with related materials and services [3] - The company has a Zacks Rank of 1 and has seen a significant increase in the Zacks Consensus Estimate for its current year earnings by 24.4% over the last 60 days [3] - Commercial Metals has a PEG ratio of 0.44, which is considerably lower than the industry average of 1.31, and it possesses a Growth Score of B [4]

Core Insights - Commercial Metals Company (CMC) has been recognized on Newsweek's America's Most Responsible Companies list for 2026, marking the fourth consecutive year of receiving this honor [1][2] Company Overview - CMC is an innovative solutions provider focused on building a stronger, safer, and more sustainable world, primarily through its extensive manufacturing network in the United States and Central Europe [2] - The company offers products and technologies that meet the critical reinforcement needs of the global construction sector, supporting various applications including infrastructure, non-residential, residential, industrial, and energy generation and transmission [2] Commitment to Responsibility - The recognition from Newsweek reflects the dedication of CMC's employees and the company's ongoing commitment to operating responsibly, supporting communities, and reducing environmental impact [2] - CMC aims to advance its priorities to build a stronger future for all stakeholders [2]

Group 1 - Commercial Metals Company (CMC) will hold a conference call on January 8, 2026, at 11:00 a.m. Eastern Time to discuss its first quarter earnings for fiscal 2026 [1] - The teleconference will be available via webcast, accessible through CMC's website [2] - CMC is positioned as an innovative solutions provider in the construction sector, focusing on building a stronger, safer, and more sustainable world [3] Group 2 - CMC operates an extensive manufacturing network primarily in the United States and Central Europe, offering products and technologies for the global construction sector [3] - The company's solutions cater to various construction applications, including infrastructure, non-residential, residential, industrial, and energy generation and transmission [3]