Commercial Metals (CMC) is a Great Momentum Stock: Should You Buy?

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]