These Stocks Have Become An Attractive Value Play: Commercial Metals Company (CMC), Houghton Mifflin Harcourt Company (HMHC)

7 analysts out of 12 Wall Street brokerage firms rate Commercial Metals Company (NYSE:CMC) as a Buy, while 1 see it as a Sell. The rest 4 describe it as a Hold. CMC stock traded higher to an intra-day high of $16.35. At one point in session, its potential discontinued and the price was down to lows at $16.07. Analysts have set CMC’s consensus price at $21.15, effectively giving it a 30.39% projection on returns. Should the projected estimates be met, then the stock will likely hit its highest price at $27 (up 66.46% from current price levels). CMC has a 8.4% ROE, higher than the 3.69% average for the industry. The average ROE for the sector is 7.82%.

It is expected that in May 2019 quarter CMC will have an EPS of $0.61, suggesting a 48.78% growth. For Aug 2019 is projected at $0.69. It means that there could be a 35.29% growth in the quarter. Yearly earnings are expected to rise by 27.52% to about $1.9. As for the coming year, growth will be about 12.11%, lifting earnings to $2.13. RSI after the last trading period was 40.42. CMC recorded a change of -3.34% over the past week and returned 0.37% over the last three months while the CMC stock’s monthly performance revealed a shift in price of -7.79%. The year to date (YTD) performance stands at 1.25%, and the bi-yearly performance specified an activity trend of -19.5% while the shares have moved -28.04% for the past 12 months.

Commercial Metals Company (CMC) currently trades at $16.22, which is higher by 0.81% its previous price. It has a total of 117.57 million outstanding shares, with an ATR of around 0.48. The company’s stock volume dropped to 0.7 million, worse than 1.31 million that represents its 50-day average. A 5-day decrease of about -3.34% in its price means CMC is now 1.25% higher on year-to-date. The shares have surrendered $43443.78 since its $24.95 52-week high price recorded on 31st of May 2018. Overall, it has seen a growth rate of -28.04 over the last 12 months. The current price per share is $0.989999999999998 above the 52 week low of $15.23 set on 26th of December 2018.

Commercial Metals Company (NYSE:CMC)’s EPS was $0.29 as reported for the February quarter. In comparison, the same quarter a year ago had an EPS of $0.17. That means that its growth in general now stands at 71%. Therefore, a prediction of $0.26 given by the analysts brought a positive surprise of 12%. CMC February quarter revenue was $1.4 billion, compared to $1.05 billion recorded in same quarter last year, giving it a 33% growth rate. The company’s $0.35 billion revenue growth that quarter surprised Wall Street and investors will need to consider this as they assess the stock.

Houghton Mifflin Harcourt Company (NASDAQ:HMHC) shares appreciated 3.87% over the last trading period, taking overall 5-day performance up to -18.17%. HMHC’s price now at $6.71 is weaker than the 50-day average of $7.45. Getting the trading period increased to 200 days, the stock price was seen at $7.83 on average. The general public currently hold control of a total of 123.34 million shares, which is the number publicly available for trading. The total of shares that it has issued to investors is 129.63 million. The company’s management holds a total of 0.4%, while institutional investors hold about 95.2% of the remaining shares. HMHC share price finished last trade -10.65% below its 20 day simple moving average and its downbeat gap from 200 day simple moving average is -14.25%, while closing the session with -10.25% distance from 50 day simple moving average.

Houghton Mifflin Harcourt Company (HMHC) shares were last observed trading -36.94% down since January 25, 2019 when the peak of $10.64 was hit. Last month’s price growth of -16.12% puts HMHC performance for the year now at -24.27%. Consequently, the shares price is trending higher by 31.57%, a 52-week worst price since Aug. 07, 2018. However, it is losing value with -20.78% in the last 6 months. From a technical perspective, it appears more likely that the stock will experience a Bull Run market as a result of the strong support seen recently between $6.11 and $6.41. The immediate resistance area is now $6.94 Williams’s %R (14) for HMHC moved to 68.51 while the stochastic %K points at 25.25.

HMHC’s beta is 0.82; meaning investors could reap lower returns, although it also poses lower risks. The company allocated $-1.12 per share from its yearly profit to its outstanding shares. Its last reported revenue is $194.63 million, which was -11% versus $219.77 million in the corresponding quarter last year. The EPS for Mar 19 quarter came in at $-0.95 compared to $-0.82 in the year-ago quarter and had represented 16% year-over-year earnings per share growth. HMHC’s ROA is -3.7%, lower than the 5.08% industry average. Although a more robust percentage would be better, consideration is given to how well peers within the industry performed. Companies within the sector had an ROA of 5.08%.

Estimated quarterly earnings for Houghton Mifflin Harcourt Company (NASDAQ:HMHC) are around $0.03 per share in three months through June with $0.79 also the estimate for September quarter of the fiscal year. It means the growth is estimated at 117.65% and 16.18%, respectively. Analysts estimate full-year growth to be 58.49%, the target being $-0.44 a share. The upcoming year will see an increase in growth by percentage to -4.55%, more likely to see it hit the $-0.46 per share. The firm’s current profit margin over the past 12 months is -7.1%. HMHC ranks lower in comparison to an average of 10.91% for industry peers; while the average for the sector is 8.97%.