Analysts Forecast Q1 EPS of $1.54, Jefferies Lifts Commercial Metals Target to $78
Jefferies upgraded Commercial Metals Company to Buy, boosting its price target from $70 to $78 as analysts forecast Q1 EPS of $1.54 versus $0.78 and revenue of $2.05 billion versus $1.91 billion. Shares have gained 2.6% ahead of the Jan. 8 earnings release, and the dividend yield stands at 0.97% (18¢).
1. Q1 Earnings Forecast and Analyst Upgrades
Commercial Metals Company is set to report first-quarter results before markets open on January 8, 2025. Analysts surveyed by Benzinga Pro project earnings per share of $1.54, nearly double last year’s 78 cents, while revenue is forecast at $2.05 billion, up from $1.91 billion a year earlier. On December 10, Jefferies analyst Christopher LeFemina upgraded the stock from Hold to Buy and raised his price target from $70 to $78, citing stronger pricing power in the company’s scrap recycling and steelmaking operations.
2. Dividend Income Strategy
Investors targeting $500 of monthly dividend income would need to accumulate approximately 8,333 shares, based on the current quarterly payout of $0.18 per share (annualized at $0.72). That represents roughly $621,725 in share value. A more conservative plan aiming for $100 per month requires about 1,667 shares, or $124,375 in holdings. Because both the dividend payment and share price can fluctuate, actual income may vary; the yield is calculated by dividing the annualized dividend by the prevailing stock price.
3. Valuation Metrics and Balance Sheet Strength
Commercial Metals trades at a price-earnings ratio of 98.4 and a price-to-sales multiple of 1.06, suggesting investors are pricing in high future growth. The enterprise-value-to-sales ratio stands at 1.10. On the balance sheet, a debt-to-equity ratio of 0.32 indicates conservative leverage, while a current ratio of 2.78 demonstrates ample liquidity to cover short-term obligations.