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Core & Main (CNM) Stock Moves -0.39%: What You Should Know

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Core & Main (CNM - Free Report) closed the latest trading day at $56.51, indicating a -0.39% change from the previous session's end. The stock's performance was ahead of the S&P 500's daily loss of 0.47%. Meanwhile, the Dow lost 0.31%, and the Nasdaq, a tech-heavy index, lost 0.51%.

Shares of the distributor of water and fire protection products have appreciated by 11.43% over the course of the past month, outperforming the Industrial Products sector's gain of 3.36% and the S&P 500's gain of 1.67%.

The upcoming earnings release of Core & Main will be of great interest to investors. The company's earnings per share (EPS) are projected to be $0.36, reflecting a 5.88% increase from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $1.68 billion, reflecting a 16.67% rise from the equivalent quarter last year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $2.16 per share and revenue of $7.42 billion. These totals would mark changes of +0.47% and +10.76%, 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. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Core & Main currently has a Zacks Rank of #2 (Buy).

With respect to valuation, Core & Main is currently being traded at a Forward P/E ratio of 26.22. This valuation marks a premium compared to its industry's average Forward P/E of 18.69.

It is also worth noting that CNM currently has a PEG ratio of 3.13. 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 Manufacturing - Tools & Related Products industry currently had an average PEG ratio of 1.67 as of yesterday's close.

The Manufacturing - Tools & Related Products industry is part of the Industrial Products sector. Currently, this industry holds a Zacks Industry Rank of 86, positioning it in the top 35% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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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