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 A, indicating strong momentum characteristics [2] - The company has a Zacks Rank of 1 (Strong Buy), suggesting it is expected to outperform the market [3] Price Performance - CMC shares have increased by 5.53% over the past week, outperforming the Zacks Steel - Producers industry, which rose by 1.62% [5] - Over the past month, CMC's price change is 21.15%, compared to the industry's 7.55% [5] - In the last quarter, CMC shares rose by 23.91%, and over the past year, they increased by 26.64%, while the S&P 500 only moved 3.31% and 13.94%, respectively [6] Trading Volume - CMC's average 20-day trading volume is 894,687 shares, which serves as a bullish indicator when combined with rising stock prices [7] Earnings Outlook - In the past two months, three earnings estimates for CMC have been revised upwards, increasing the consensus estimate from $4.93 to $6.13 [9] - For the next fiscal year, two estimates have also moved upwards, with no downward revisions [9] Conclusion - Given the strong momentum indicators and positive earnings outlook, CMC is positioned as a 1 (Strong Buy) stock with a Momentum Score of A, making it a compelling investment option [11]

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]

Core Insights - Commercial Metals Company (CMC) stock reached a 52-week high of $68.35, closing at $66.86, driven by the acquisition of Concrete Pipe & Precast, LLC (CP&P) and strong Q4 results [1][9] - CMC has a market capitalization of $7.4 billion and holds a Zacks Rank 1 (Strong Buy) [1] Financial Performance - CMC reported Q4 earnings per share (EPS) of $1.35, up from $0.90 year-over-year, and adjusted EPS of $1.37, exceeding the Zacks Consensus Estimate of $1.32 [2] - Net sales for the quarter were $2.11 billion, a 5.9% increase year-over-year, surpassing the Zacks Consensus Estimate of $2.04 billion [3] - Gross profit rose 21.6% to $393 million, while core EBITDA increased 32.9% to $291 million [3] Recent Acquisitions - CMC completed the acquisition of CP&P, which is expected to create a scalable platform in a fragmented industry with strong profit margins [4] - The acquisition is projected to be immediately accretive to CMC's EPS and free cash flow, with annual run-rate synergies expected between $5 million and $10 million by the third year [5] - CMC also plans to acquire Foley Products Company for $1.84 billion, expected to close by the end of 2025, which will enhance its position in the precast concrete market [6] Market Conditions - Strong demand in North America for CMC's major product lines is anticipated to positively impact results [7] - The company is implementing price increases across its mill products to counter rising scrap costs, which will help maintain margins [7] Stock Performance - CMC shares have increased by 8.9% over the past year, compared to the industry's growth of 22.2% [8]

Economic Overview - The U.S. economy is experiencing persistent inflation and slowing job growth, increasing the likelihood of interest rate cuts by the Federal Reserve [1] - Tariffs, supply-chain issues, and inconsistent business investment are negatively impacting economic growth, making it challenging for retail investors to interpret market signals and achieve solid returns [1] Broker Recommendations - Following brokers' recommendations can simplify investment decisions, with stocks like Illumina, Inc. (ILMN), Commercial Metals Company (CMC), and Newmont Corporation (NEM) being highlighted as potential opportunities [2] - Brokers provide insights through direct engagement with company management, analysis of public disclosures, and participation in earnings calls, which helps evaluate a company's fundamentals in the broader economic context [3] Stock Upgrades - Broker upgrades are often based on new information, earnings surprises, improving industry conditions, margin expansion, balance-sheet improvements, or attractive valuations relative to growth [4] - While broker upgrades are valuable, they should not be the sole basis for investment decisions; long-term returns require consideration of multiple factors including fundamental strength and industry dynamics [5] Stock Screening Strategy - A screening strategy identifies stocks with broker rating upgrades of 1% or more over the past four weeks, priced above $5, and with an average 20-day trading volume greater than 100,000 [6] - Stocks with a Zacks Rank of 1 (Strong Buy) or 2 (Buy) have a proven track record, and those with a VGM Score of A or B combined with a Zacks Rank 1 or 2 show the best upside potential [7] Company Highlights - Illumina, based in San Diego, specializes in sequencing and array-based solutions for genetic analysis, with a projected earnings increase of 92.2% year-over-year in 2025 and a 5% broker rating upgrade in the last four weeks [8][9] - Commercial Metals, located in Irving, TX, focuses on manufacturing and recycling steel and metal products, expecting an 87.5% earnings surge in fiscal 2026 with an 8.3% broker rating upgrade [10][11] - Newmont, one of the largest gold producers globally, anticipates a 74.1% earnings increase in 2025, supported by a 4.8% broker rating upgrade in the past four weeks [10][12]