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Why Core & Main (CNM) Dipped More Than Broader Market Today

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Core & Main (CNM - Free Report) closed the most recent trading day at $51.26, moving -1.56% from the previous trading session. This move lagged the S&P 500's daily loss of 1.17%. Elsewhere, the Dow lost 0.53%, while the tech-heavy Nasdaq lost 2.04%.

The distributor of water and fire protection products's shares have seen an increase of 0.83% over the last month, not keeping up with the Industrial Products sector's gain of 1.51% and the S&P 500's gain of 2.12%.

The upcoming earnings release of Core & Main will be of great interest to investors. 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.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $2.24 per share and a revenue of $7.67 billion, indicating changes of +5.16% and +6.72%, respectively, from the former year.

Any recent changes to analyst estimates for Core & Main should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

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. Within the past 30 days, our consensus EPS projection remained stagnant. Core & Main is currently a Zacks Rank #5 (Strong Sell).

Valuation is also important, so investors should note that Core & Main has a Forward P/E ratio of 23.21 right now. This expresses a premium compared to the average Forward P/E of 22.31 of its industry.

It is also worth noting that CNM currently has a PEG ratio of 2.04. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Manufacturing - Tools & Related Products industry currently had an average PEG ratio of 1.59 as of yesterday's close.

The Manufacturing - Tools & Related Products industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 96, putting it in the top 39% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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