Core & Main (CNM) closed at $43.37 in the latest trading session, marking a -1.05% move from the prior day. The stock's change was less than the S&P 500's daily gain of 0.89%. On the other hand, the Dow registered a gain of 0.74%, and the technology-centric Nasdaq increased by 1.29%.
The stock of distributor of water and fire protection products has fallen by 7.24% in the past month, lagging the Industrial Products sector's loss of 5.7% and the S&P 500's loss of 0.63%.
The upcoming earnings release of Core & Main will be of great interest to investors. The company is expected to report EPS of $0.94, up 8.05% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $2.14 billion, up 2.42% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $3.13 per share and revenue of $7.89 billion. These totals would mark changes of +5.39% and +3.12%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Core & Main. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. At present, Core & Main boasts a Zacks Rank of #2 (Buy).
Looking at its valuation, Core & Main is holding a Forward P/E ratio of 14. Its industry sports an average Forward P/E of 17.27, so one might conclude that Core & Main is trading at a discount comparatively.
One should further note that CNM currently holds a PEG ratio of 1.49. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The average PEG ratio for the Manufacturing - Tools & Related Products industry stood at 1.37 at the close of the market yesterday.
The Manufacturing - Tools & Related Products industry is part of the Industrial Products sector. Currently, this industry holds a Zacks Industry Rank of 190, positioning it in the bottom 23% 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Core & Main, Inc. (CNM): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).