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Core & Main (CNM) Falls More Steeply Than Broader Market: What Investors Need to Know

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In the latest market close, Core & Main (CNM - Free Report) reached $46.09, with a -1.35% movement compared to the previous day. This move lagged the S&P 500's daily loss of 0.18%. Meanwhile, the Dow experienced a drop of 0.8%, and the technology-dominated Nasdaq saw an increase of 0.27%.

Shares of the distributor of water and fire protection products have appreciated by 7.63% over the course of the past month, outperforming the Business Services sector's gain of 4.62% and the S&P 500's gain of 4.46%.

The investment community will be closely monitoring the performance of Core & Main in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $0.65, reflecting no change from the same quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $2 billion, indicating a 9.51% upward movement from the same quarter last year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $2.10 per share and revenue of $7.32 billion. These totals would mark changes of -2.33% and +9.21%, respectively, from last year.

Investors should also take note of any recent adjustments to analyst estimates for Core & Main. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Our research demonstrates that these adjustments in estimates directly associate with imminent 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Core & Main is currently a Zacks Rank #5 (Strong Sell).

Valuation is also important, so investors should note that Core & Main has a Forward P/E ratio of 22.28 right now. This represents a discount compared to its industry's average Forward P/E of 29.4.

One should further note that CNM currently holds a PEG ratio of 3.04. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Waste Removal Services industry currently had an average PEG ratio of 2.99 as of yesterday's close.

The Waste Removal Services industry is part of the Business Services sector. With its current Zacks Industry Rank of 180, this industry ranks in the bottom 29% of all industries, numbering over 250.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within 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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