Back to top

Image: Bigstock

Core & Main (CNM) Stock Declines While Market Improves: Some Information for Investors

Read MoreHide Full Article

In the latest trading session, Core & Main (CNM - Free Report) closed at $46.00, marking a -3.04% move from the previous day. This change lagged the S&P 500's 1.31% gain on the day. On the other hand, the Dow registered a gain of 0.49%, and the technology-centric Nasdaq increased by 1.6%.

Coming into today, shares of the distributor of water and fire protection products had gained 16.22% in the past month. In that same time, the Industrial Products sector lost 3.35%, while the S&P 500 lost 3.66%.

The investment community will be closely monitoring the performance of Core & Main in its forthcoming earnings report. The company is predicted to post an EPS of $0.92, indicating a 27.78% growth compared to the equivalent quarter last year. 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 project earnings of $3.09 per share and a revenue of $7.85 billion, demonstrating changes of +4.04% and +2.7%, respectively, from the preceding year.

It is also important to note the recent changes to analyst estimates for Core & Main. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. The Zacks Consensus EPS estimate remained stagnant within the past month. Core & Main is currently a Zacks Rank #3 (Hold).

With respect to valuation, Core & Main is currently being traded at a Forward P/E ratio of 15.34. This indicates a discount in contrast to its industry's Forward P/E of 19.81.

It's also important to note that CNM currently trades at a PEG ratio of 1.93. 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. Manufacturing - Tools & Related Products stocks are, on average, holding a PEG ratio of 1.52 based on yesterday's closing prices.

The Manufacturing - Tools & Related Products industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 76, which puts it in the top 31% 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.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.

Published in