Commercial Metals Company (CMC) - Stock Analysis
Last updated: Jan 19, 2026
Research Idea
Research content for general circulation. Not individualized advice. Methodology & Disclosures
Commercial Metals Company benefits from accretive acquisitions increasing margins, strong steel demand, and positive regulatory tailwinds (anti-dumping ruling). The stock has steady price appreciation with positive technical momentum, underpinned by improved earnings and cash flow outlook, making it a solid hot idea for near-term gains.
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AI Analyst Overview
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Valuation Metrics
Fundamental Analysis
Key Financial Insights: ⢠EBITDA marginâ ⢠Debt-funded cash ⢠FCF compression CMC's quarter shows materially better profitability and a much stronger cash position but the cash build was largely debt-funded, raising leverage and cashâconversion concerns;
Price Behavior
Key Price Behavior Insights: ⢠Higher highs/lows ⢠$70 support ⢠Short-term resistance Support Level: $70.00 Resistance Level: $75.62 CMC has trended higher over the last month from ~$70.26 to $74.42, showing higher highs/lows and support around $70 but facing short-term resistance near $75.62 amid rising intraday volatility.
Sentiment & News
Key News Insights: ⢠50% EBITDA surge ⢠$2.5B acquisitions ⢠Dividend continuity CMC reported commanding Q1 FY2026 results with >50% consolidated core EBITDA growth, closed ~$2.5B in precast acquisitions, kept dividends, and garnered "Moderate Buy" analyst support, positioning it for potential outperformance in steel and construction.
AI Summary
CMC's transformation into a higherâmargin, M&Aâdriven construction solutions platform (precast + TAG) materially increases upside optionality but makes equity value conditional on rapid TAG cost delivery, successful precast integration and FCFâdriven deleveraging given the ~2.5x proâforma leverage.
Description
Commercial Metals Company operates integrated steel and metal recycling, fabrication, and manufacturing businesses across the United States, Poland, China and other markets. It processes ferrous and nonferrous scrap for mills and refineries and produces finished and semi-finished long products and fabricated reinforcement used in construction, infrastructure, transportation and industrial applications; it also sells and rents construction-related equipment. The company was founded in 1915 and is headquartered in Irving, Texas.
Idea History
| Date | Close | Ticker | Company | Summary | Status | P/L |
|---|---|---|---|---|---|---|
| Jan 1 | Jan 8 | CMC | Commercial Metals Company | Commercial Metals Company benefits from accretive acquisitions increasing margins, strong steel demand, and positive regulatory tailwinds (anti-dumping ruling). The stock has steady price appreciation with positive technical momentum, underpinned by improved earnings and cash flow outlook, making it a solid hot idea for near-term gains. | Closed | +2.0% |
| Dec 17 | Dec 24 | CMC | Commercial Metals Company | Strong near-term growth driven by strategic acquisitions closed in December 2025 adding $250M EBITDA, operational improvements, sector tailwinds from infrastructure spending, and positive technical momentum with an 11% stock gain and technical breakout signals. | Closed | +1.1% |