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Core & Main (CNM) Dips More Than Broader Market: What You Should Know

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Core & Main (CNM - Free Report) closed at $64.34 in the latest trading session, marking a -1.76% move from the prior day. The stock trailed the S&P 500, which registered a daily loss of 0.43%. On the other hand, the Dow registered a loss of 0.77%, and the technology-centric Nasdaq decreased by 0.22%.

The distributor of water and fire protection products's shares have seen a decrease of 0.43% over the last month, not keeping up with the Industrial Products sector's gain of 0.84% and the S&P 500's gain of 2.65%.

The upcoming earnings release of Core & Main will be of great interest to investors. The company's upcoming EPS is projected at $0.78, signifying a 27.87% increase compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $2.11 billion, up 7.54% from the prior-year quarter.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $2.46 per share and revenue of $7.75 billion. These totals would mark changes of +15.49% and +4.11%, respectively, from last year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Core & Main. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. At present, Core & Main boasts a Zacks Rank of #3 (Hold).

Digging into valuation, Core & Main currently has a Forward P/E ratio of 26.68. This expresses a premium compared to the average Forward P/E of 19.93 of its industry.

Investors should also note that CNM has a PEG ratio of 1.93 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. By the end of yesterday's trading, the Manufacturing - Tools & Related Products industry had an average PEG ratio of 1.73.

The Manufacturing - Tools & Related Products industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 225, putting it in the bottom 9% of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow CNM in the coming trading sessions, be sure to utilize Zacks.com.


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