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

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Core & Main (CNM - Free Report) closed at $56.52 in the latest trading session, marking a +2.3% move from the prior day. The stock exceeded the S&P 500, which registered a loss of 0.51% for the day. On the other hand, the Dow registered a gain of 0.53%, and the technology-centric Nasdaq decreased by 1.51%.

Shares of the distributor of water and fire protection products witnessed a loss of 0.72% over the previous month, trailing the performance of the Industrial Products sector with its gain of 10.34%, and the S&P 500's gain of 0.93%.

Analysts and investors alike will be keeping a close eye on the performance of Core & Main in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $0.48, marking a 45.45% rise compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $1.58 billion, indicating a 6.82% decrease compared to the same quarter of the previous year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $2.93 per share and a revenue of $7.66 billion, representing changes of +37.56% and 0%, 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 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 take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Right now, Core & Main possesses a Zacks Rank of #1 (Strong Buy).

From a valuation perspective, Core & Main is currently exchanging hands at a Forward P/E ratio of 17.34. This signifies a discount in comparison to the average Forward P/E of 20.57 for its industry.

We can additionally observe that CNM currently boasts a PEG ratio of 1.97. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Manufacturing - Tools & Related Products industry currently had an average PEG ratio of 1.71 as of yesterday's close.

The Manufacturing - Tools & Related Products industry is part of the Industrial Products sector. This industry, currently bearing a Zacks Industry Rank of 27, finds itself in the top 12% echelons 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.

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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