Core & Main (CNM) Declines More Than Market: Some Information for Investors

Core & Main (CNM) closed the most recent trading day at $43.37, moving -1.61% from the previous trading session. This change lagged the S&P 500's daily loss of 0.02%. On the other hand, the Dow registered a loss of 0.21%, and the technology-centric Nasdaq decreased by 0.08%.

Prior to today's trading, shares of the distributor of water and fire protection products had gained 0.23% outpaced the Industrial Products sector's loss of 1.66% and lagged the S&P 500's gain of 3.67%.

Analysts and investors alike will be keeping a close eye on the performance of Core & Main in its upcoming earnings disclosure. The company is expected to report EPS of $0.93, up 6.9% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $2.14 billion, showing a 2.31% escalation compared to the year-ago quarter.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $3.15 per share and revenue of $7.88 billion. These totals would mark changes of +6.06% and +3.01%, respectively, from last year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Core & Main. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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 currently has a Zacks Rank of #3 (Hold).

Looking at valuation, Core & Main is presently trading at a Forward P/E ratio of 14.01. Its industry sports an average Forward P/E of 18.83, so one might conclude that Core & Main is trading at a discount comparatively.

Meanwhile, CNM's PEG ratio is currently 1.49. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Manufacturing - Tools & Related Products stocks are, on average, holding a PEG ratio of 1.48 based on yesterday's closing prices.

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 Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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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This article originally published on Zacks Investment Research (zacks.com).

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