2024-05-14 00:10:08 ET
Summary
- Growth trends in Q2 looked sluggish, especially in the European Steel Group.
- Technical Analysis points to more headwinds over the near term.
- Shares look overvalued compared to historic valuation multiples. CMC's return on capital metric also trails its 5-year comparable.
Intro
We wrote about Commercial Metals Company ( CMC ) in 2020 and multiple times in 2021 when we stamped a 'Buy' signal on the steel fabricating company. Since our initial 'Buy' call in July 2020, shares have returned approximately 200% for corresponding shareholders. The company's keen valuation at the time, supporting technicals and a strong growth path supported our bullish thesis, resulting in shares almost eclipsing $60 a share in March of this year....
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For further details see:
Commercial Metals Company: Time To Take Profits