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Core & Main (CNM) Stock Moves 2.30%: What You Should Know

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In the latest trading session, Core & Main (CNM - Free Report) closed at $53.83, marking a +2.3% move from the previous day. Meanwhile, the Dow experienced a rise of 0.47%, and the technology-dominated Nasdaq saw a decrease of 0.16%.

The stock of distributor of water and fire protection products has risen by 3.77% in the past month, leading the Industrial Products sector's gain of 1.12% and the S&P 500's gain of 1.16%.

Market participants will be closely following the financial results of Core & Main in its upcoming release. In that report, analysts expect Core & Main to post earnings of $0.72 per share. This would mark year-over-year growth of 4.35%. Simultaneously, our latest consensus estimate expects the revenue to be $2.08 billion, showing a 2.03% escalation compared to the year-ago quarter.

For the full year, the Zacks Consensus Estimates are projecting earnings of $2.24 per share and revenue of $7.67 billion, which would represent changes of +5.16% and +3.02%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for Core & Main. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Currently, Core & Main is carrying a Zacks Rank of #5 (Strong Sell).

In terms of valuation, Core & Main is currently trading at a Forward P/E ratio of 23.46. This represents a premium compared to its industry average Forward P/E of 21.85.

It is also worth noting that CNM currently has a PEG ratio of 2.06. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Manufacturing - Tools & Related Products industry stood at 1.65 at the close of the market yesterday.

The Manufacturing - Tools & Related Products industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 32, putting it in the top 13% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. 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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