Recs

6

4-Star Stocks Poised to Pop: Commercial Metals

Based on the aggregated intelligence of 120,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, steel and metals maker and recycler Commercial Metals (NYSE: CMC  ) has earned a respected four-star ranking. While five-star stocks have been the best performers, our data has shown that four-star stocks still outshine the market by a significant margin and shouldn't be taken lightly; conversely, low-rated stocks have woefully lagged the market average.

With that in mind, let's take a closer look at Commercial Metals' business and see what CAPS investors are saying about the stock right now.

Commercial Metals facts 

Headquarters (Founded)

Irving, Texas (1915)

Market Cap

$769.10 Million

Industry

Steel and Iron

Trailing-12-Month Revenue

$10.43 Billion

Management

CEO Murray McClean

CFO William Larson

Return on Equity (Average, Past Three Years)

24.9%

Dividend Yield

6.3%

Competitors

Nucor (NYSE: NUE  )

Steel Dynamics (Nasdaq: STLD  )

CAPS Members Bullish on CMC Also Bullish on:

Vale (NYSE: RIO  )

Chesapeake Energy (NYSE: CHK  )

CAPS Members Bearish on CMC Also Bearish on:

Citigroup (NYSE: C  )

PotashCorp (NYSE: POT  )

Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.

Over on CAPS,  487 of the 508 members who have rated Commercial Metals -- some 96% -- believe the stock will outperform the S&P 500 going forward. These bulls include scrapperdude and unibeats.

Late last month, scrapperdude shared a simple reason why the stock should flourish: "Because recycling will never be out of vogue. The future depends on it, and it is cheaper and cleaner to recycle metals than to keep raping the earth for virgin products."

In a pitch from four days ago, unibeats shares that greenish sentiment:

Steel will not go out of style in the foreseeable future. It's used in everything, it's relatively cheap, and it's strong.

Another aspect of the company is that it is environmentally friendly. This trend has and will continue to grow. With a democratic president in charge, the growth is even more certain.

And like [AK Steel], this company is poised to take position. I can see Obama rolling out New Deal-esque infrastructure expansion/renovation plans, and metals will be in great demand in order to feed the construction efforts.

What do you think about Commercial Metals, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 120,000 investors are waiting to hear what you have to say. CAPS is 100% free, so get started.

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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Chesapeake Energy is a Motley Fool Inside Value pick. The Fool's disclosure policy always gets a perfect score.


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Related Tickers

2/14/2012 4:00 PM
CMC $13.67 Down -0.30 -2.15%
Commercial Metals… CAPS Rating: ****
POT $44.49 Down -0.23 -0.51%
PotashCorp CAPS Rating: ****
RIO $58.62 Down -2.03 -3.35%
Rio Tinto plc (ADR… CAPS Rating: ****
STLD $15.02 Down -0.23 -1.51%
Steel Dynamics, In… CAPS Rating: ****
C $32.08 Down -0.80 -2.43%
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CHK $22.71 Up +0.05 +0.22%
Chesapeake Energy… CAPS Rating: *****
NUE $43.37 Down -0.55 -1.25%
Nucor CAPS Rating: *****

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