The latest insider move at Commercial Metals (CMC) is drawing attention, as director Dennis V. Arriola bought 2,000 shares in the open market. This is the first substantial insider purchase since early 2024.

That insider purchase comes after a strong run, with a 90 day share price return of 36.0% and a 1 year total shareholder return of 63.44%. This suggests momentum has been building even as the latest share price sits at $76.87 following a 1 day decline of 1.40%.

If insider activity at Commercial Metals has caught your eye and you want to see what else is moving in related areas, this could be a good moment to review aerospace and defense stocks.

With Commercial Metals trading at $76.87, an intrinsic value estimate implying roughly a 35% discount and a modest 4% gap to the average analyst target, you have to ask whether there is real upside left here or if the market is already pricing in future growth.

Most Popular Narrative: 3.8% Undervalued

Commercial Metals latest close at $76.87 sits just below the most followed fair value estimate of $79.90, which is based on detailed cash flow assumptions and margin forecasts.

CMC is actively pursuing organic and inorganic growth opportunities to diversify its product portfolio and improve its competitive position, particularly in niche markets like performance reinforcing steel and Geogrid solutions. Such investments, requiring less capital but yielding high returns, aim to enhance net margins and expand earnings.

Want to see what sits behind that $79.90 fair value? The narrative focuses on rising margins, steady top line growth, and a lower future earnings multiple. Curious which assumptions really move the needle?

Result: Fair Value of $79.90 (UNDERVALUED)

However, interest rates, tariffs, and new rebar capacity from competitors could pressure margins and demand, which would challenge the current undervalued narrative.

Build Your Own Commercial Metals Narrative

If you look at the numbers and reach a different conclusion, or simply prefer to test your own assumptions, you can build a custom CMC thesis in just a few minutes. Start with Do it your way.

A great starting point for your Commercial Metals research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.

Looking for more investment ideas?

If CMC has sparked your interest, do not stop here. Fresh ideas across sectors could help you spot opportunities you would otherwise miss on Simply Wall St.

• Scan for potential value across the market by checking out these 887 undervalued stocks based on cash flows that align with your return expectations and risk comfort.
• Explore developments in artificial intelligence by reviewing these 24 AI penny stocks that are tied to real business models and tangible revenue drivers.
• Target consistent income potential by focusing on these 12 dividend stocks with yields > 3% that may suit a long term, yield focused approach.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.