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Core & Main (CNM) Exceeds Market Returns: Some Facts to Consider

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The most recent trading session ended with Core & Main (CNM - Free Report) standing at $42.21, reflecting a +1.78% shift from the previouse trading day's closing. This move outpaced the S&P 500's daily gain of 0.82%. Elsewhere, the Dow gained 0.41%, while the tech-heavy Nasdaq added 0.95%.

The distributor of water and fire protection products's stock has climbed by 2.55% in the past month, falling short of the Business Services sector's gain of 6.18% and the S&P 500's gain of 5.59%.

Analysts and investors alike will be keeping a close eye on the performance of Core & Main in its upcoming earnings disclosure. In that report, analysts expect Core & Main to post earnings of $0.47 per share. This would mark year-over-year growth of 51.61%. Simultaneously, our latest consensus estimate expects the revenue to be $1.45 billion, showing a 5.42% escalation compared to the year-ago quarter.

Any recent changes to analyst estimates for Core & Main should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Core & Main is currently a Zacks Rank #3 (Hold).

Digging into valuation, Core & Main currently has a Forward P/E ratio of 16.86. This signifies a discount in comparison to the average Forward P/E of 22.47 for its industry.

We can also see that CNM currently has a PEG ratio of 1.93. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Waste Removal Services industry currently had an average PEG ratio of 2.83 as of yesterday's close.

The Waste Removal Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 107, which puts it in the top 43% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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