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Core & Main (CNM) Stock Sinks As Market Gains: What You Should Know

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Core & Main (CNM - Free Report) ended the recent trading session at $50.10, demonstrating a -1.49% change from the preceding day's closing price. This change lagged the S&P 500's 0.21% gain on the day. At the same time, the Dow added 1.18%, and the tech-heavy Nasdaq lost 0.25%.

The distributor of water and fire protection products's shares have seen an increase of 2.75% over the last month, not keeping up with the Industrial Products sector's gain of 5.83% and the S&P 500's gain of 4.36%.

Market participants will be closely following the financial results of Core & Main in its upcoming release. The company is expected to report EPS of $0.72, up 4.35% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $2.08 billion, reflecting a 2.03% rise from the equivalent quarter last year.

CNM's full-year Zacks Consensus Estimates are calling for earnings of $2.24 per share and revenue of $7.67 billion. These results would represent year-over-year changes of +5.16% and +3.02%, respectively.

Investors should also note any recent changes to analyst estimates for Core & Main. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Core & Main is holding a Zacks Rank of #3 (Hold) right now.

In the context of valuation, Core & Main is at present trading with a Forward P/E ratio of 22.67. For comparison, its industry has an average Forward P/E of 23.03, which means Core & Main is trading at a discount to the group.

It is also worth noting that CNM currently has a PEG ratio of 1.99. 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. The Manufacturing - Tools & Related Products industry had an average PEG ratio of 1.77 as trading concluded yesterday.

The Manufacturing - Tools & Related Products industry is part of the Industrial Products sector. With its current Zacks Industry Rank of 83, this industry ranks in the top 34% of all industries, numbering over 250.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


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