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

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Core & Main (CNM - Free Report) closed the latest trading day at $53.55, indicating a -1.91% change from the previous session's end. The stock trailed the S&P 500, which registered a daily gain of 0.24%. Meanwhile, the Dow gained 0.16%, and the Nasdaq, a tech-heavy index, added 0.08%.

Shares of the distributor of water and fire protection products witnessed a loss of 3.89% over the previous month, trailing the performance of the Industrial Products sector with its loss of 1.59% and the S&P 500's gain of 2.37%.

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 $0.36, 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.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Core & Main. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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. Over the past month, the Zacks Consensus EPS estimate has remained steady. Core & Main is currently sporting a Zacks Rank of #3 (Hold).

With respect to valuation, Core & Main is currently being traded at a Forward P/E ratio of 22.71. This valuation marks a premium compared to its industry's average Forward P/E of 19.36.

One should further note that CNM currently holds a PEG ratio of 2.71. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Manufacturing - Tools & Related Products stocks are, on average, holding a PEG ratio of 1.43 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 155, placing it within the bottom 39% of over 250 industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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