Should You Buy Commercial Metals Co (CMC) Today? Analysis, Price Targets, and 2026 Outlook.
Conclusion
Hold
Latest Price
76.500
1 Day change
0.50%
52 Week Range
79.610
Analysis Updated At
2026/01/25
Commercial Metals Co (CMC) is not a strong buy at this time for a beginner investor with a long-term strategy. While the company has positive growth potential and favorable analyst ratings, the recent financial performance shows a significant drop in net income and EPS. Additionally, technical indicators suggest limited short-term upside, and there are no strong trading signals or significant catalysts to justify immediate entry.
Technical Analysis
The stock shows bullish moving averages (SMA_5 > SMA_20 > SMA_200), and the MACD is positive but contracting. RSI is neutral at 71.04, indicating no clear overbought or oversold conditions. The stock is trading near resistance levels (R1: 78.603, R2: 80.807), suggesting limited immediate upside.
Options Data
Bullish
Open Interest Put-Call Ratio
Bullish
Option Volume Put-Call Ratio
The open interest and volume ratios indicate a slight bullish sentiment, but not strong enough to warrant a buy signal.
Moving Average Consensus
Sell
1
Buy
8
Positive Catalysts
2026/01/25 22:44:12
Analysts have raised price targets to $85, citing strong shipment volumes, favorable domestic market conditions, and growth potential. Earnings estimates increased by 28.4%, and the company has a favorable PEG ratio compared to industry averages.
Neutral/Negative Catalysts
2026/01/25 22:44:12
The latest financial quarter showed a significant decline in net income (-200.89% YoY) and EPS (-202.60% YoY), which raises concerns about profitability. Additionally, there are no significant hedge fund or insider trading trends, and Congress trading data is absent.
Financial Performance
In Q1 2026, revenue increased by 11.03% YoY to $2.12 billion, and gross margin improved by 19.11% YoY to 19.2%. However, net income dropped significantly by -200.89% YoY to $177.28 million, and EPS fell by -202.60% YoY to 1.58.
Growth
Profitability
Efficiency
Analyst Ratings and Price Target Trends
Analysts are broadly positive, with multiple firms raising price targets to $85 and maintaining Buy or Overweight ratings. Analysts highlight strong shipment volumes, favorable market conditions, and cost-saving initiatives as key drivers for growth.
Wall Street analysts forecast CMC stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for CMC is 78.26 USD with a low forecast of 62 USD and a high forecast of 85 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
10 Analyst Rating
Wall Street analysts forecast CMC stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for CMC is 78.26 USD with a low forecast of 62 USD and a high forecast of 85 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
8 Buy
2 Hold
0 Sell
Strong Buy
Current: 76.120
Low
62
Averages
78.26
High
85
Current: 76.120
Low
62
Averages
78.26
High
85
Morgan Stanley
NULL
to
Overweight
upgrade
$68 -> $85
AI Analysis
2026-01-09
Reason
Morgan Stanley
Price Target
$68 -> $85
AI Analysis
2026-01-09
upgrade
NULL
to
Overweight
Reason
Morgan Stanley raised the firm's price target on Commercial Metals to $85 from $68 and keeps an Overweight rating on the shares. The firm adjusted ratings and targets in North America steel as part of its 2026 outlook. It expects steel prices to remain elevated as 50% steel tariffs "remain firm." Morgan Stanley sees domestic mills continuing to take market share from imports on capacity increases despite a relatively muted demand outlook.
Jefferies
Buy
maintain
$78 -> $85
2026-01-08
Reason
Jefferies
Price Target
$78 -> $85
2026-01-08
maintain
Buy
Reason
Jefferies raised the firm's price target on Commercial Metals to $85 from $78 and keeps a Buy rating on the shares. Commercial Metals reported Q1 EBITDA of $317M, exceeding consensus expectations on stronger-than-expected shipment volumes driven by a favorable domestic market, the analyst tells investors in a research note. Management emphasized near-term priorities of ramping organic growth, integrating recent acquisitions, paying down debt, and delivering a significant portion of planned cost savings in FY26, the firm adds.
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