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Core & Main (CNM) Stock Sinks As Market Gains: Here's Why

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The latest trading session saw Core & Main (CNM - Free Report) ending at $42.73, denoting a -1.95% adjustment from its last day's close. The stock's performance was behind the S&P 500's daily gain of 0.1%. Elsewhere, the Dow gained 0.69%, while the tech-heavy Nasdaq added 0.06%.

Heading into today, shares of the distributor of water and fire protection products had lost 1.07% over the past month, lagging the Industrial Products sector's gain of 4.85% and the S&P 500's gain of 4.37% in that time.

Analysts and investors alike will be keeping a close eye on the performance of Core & Main in its upcoming earnings disclosure. The company is forecasted to report an EPS of $0.65, showcasing no movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $2 billion, indicating a 9.51% growth compared to the corresponding quarter of the prior 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.

It is also important to note the recent changes to analyst estimates for Core & Main. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Core & Main is currently sporting a Zacks Rank of #3 (Hold).

Investors should also note Core & Main's current valuation metrics, including its Forward P/E ratio of 20.78. This valuation marks a discount compared to its industry's average Forward P/E of 21.82.

We can also see that CNM currently has a PEG ratio of 2.84. 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. Manufacturing - Tools & Related Products stocks are, on average, holding a PEG ratio of 2.63 based on yesterday's closing prices.

The Manufacturing - Tools & Related Products industry is part of the Industrial Products sector. At present, this industry carries a Zacks Industry Rank of 187, placing it within the bottom 26% of over 250 industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow CNM in the coming trading sessions, be sure to utilize Zacks.com.


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