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

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Core & Main (CNM - Free Report) ended the recent trading session at $44.95, demonstrating a -4.67% change from the preceding day's closing price. The stock's change was less than the S&P 500's daily loss of 0.92%. On the other hand, the Dow registered a loss of 1.18%, and the technology-centric Nasdaq decreased by 0.84%.

The distributor of water and fire protection products's shares have seen a decrease of 9.66% over the last month, not keeping up with the Industrial Products sector's gain of 0.48% and the S&P 500's gain of 1.48%.

The investment community will be closely monitoring the performance of Core & Main in its forthcoming earnings report. 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%. In the meantime, our current consensus estimate forecasts the revenue to be $2.08 billion, indicating a 2.03% growth compared to the corresponding quarter of the prior 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.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Core & Main. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Right now, Core & Main possesses a Zacks Rank of #3 (Hold).

With respect to valuation, Core & Main is currently being traded at a Forward P/E ratio of 21.02. Its industry sports an average Forward P/E of 20.61, so one might conclude that Core & Main is trading at a premium comparatively.

It's also important to note that CNM currently trades at a PEG ratio of 1.85. 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 1.71 as trading concluded yesterday.

The Manufacturing - Tools & Related Products industry is part of the Industrial Products sector. At present, this industry carries a Zacks Industry Rank of 21, placing it within the top 9% of over 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.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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