Core & Main (CNM) Registers a Bigger Fall Than the Market: Important Facts to Note

In the latest trading session, Core & Main (CNM) closed at $44.46, marking a -1.83% move from the previous day. The stock's performance was behind the S&P 500's daily loss of 0.87%. Meanwhile, the Dow lost 1.32%, and the Nasdaq, a tech-heavy index, lost 1%.

The distributor of water and fire protection products's shares have seen an increase of 3.52% over the last month, surpassing the Industrial Products sector's gain of 0.29% and the S&P 500's gain of 3.48%.

The upcoming earnings release of Core & Main will be of great interest to investors. The company is forecasted to report an EPS of $0.93, showcasing a 6.9% upward movement from the corresponding quarter of the prior year. Alongside, our most recent consensus estimate is anticipating revenue of $2.14 billion, indicating a 2.31% upward movement from the same quarter last year.

For the full year, the Zacks Consensus Estimates project earnings of $3.15 per share and a revenue of $7.88 billion, demonstrating changes of +6.06% and +3.01%, respectively, from the preceding year.

Any recent changes to analyst estimates for Core & Main should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, there's been a 0.65% rise in the Zacks Consensus EPS estimate. Core & Main is holding a Zacks Rank of #3 (Hold) right now.

In terms of valuation, Core & Main is presently being traded at a Forward P/E ratio of 14.39. This expresses a discount compared to the average Forward P/E of 18.79 of its industry.

It's also important to note that CNM currently trades at a PEG ratio of 1.53. 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. The average PEG ratio for the Manufacturing - Tools & Related Products industry stood at 1.47 at the close of the market yesterday.

The Manufacturing - Tools & Related Products industry is part of the Industrial Products sector. At present, this industry carries a Zacks Industry Rank of 85, placing it within the top 35% of over 250 industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.

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This article originally published on Zacks Investment Research (zacks.com).

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