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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 $45.15 in the latest trading session, marking a +2.03% move from the prior day. The stock's performance was ahead of the S&P 500's daily loss of 0.51%. Meanwhile, the Dow gained 0.41%, and the Nasdaq, a tech-heavy index, lost 1.07%.

Prior to today's trading, shares of the distributor of water and fire protection products had gained 7.01% outpaced the Industrial Products sector's loss of 3.86% and the S&P 500's loss of 0.87%.

Investors will be eagerly watching for the performance of Core & Main in its upcoming earnings disclosure. The company is expected to report EPS of $0.92, up 27.78% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.15 billion, up 4.1% from the year-ago period.

For the full year, the Zacks Consensus Estimates are projecting earnings of $3.09 per share and revenue of $7.85 billion, which would represent changes of +4.04% and +2.7%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for Core & Main. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. Currently, Core & Main is carrying a Zacks Rank of #5 (Strong Sell).

With respect to valuation, Core & Main is currently being traded at a Forward P/E ratio of 14.31. Its industry sports an average Forward P/E of 19.08, so one might conclude that Core & Main is trading at a discount comparatively.

Also, we should mention that CNM has a PEG ratio of 1.8. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Manufacturing - Tools & Related Products industry held an average PEG ratio of 1.53.

The Manufacturing - Tools & Related Products industry is part of the Industrial Products sector. This industry, currently bearing a Zacks Industry Rank of 103, finds itself in the top 42% echelons of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.

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