In the latest trading session, Core & Main (CNM) closed at $48.96, marking a -1.55% move from the previous day. The stock fell short of the S&P 500, which registered a gain of 1.05% for the day. On the other hand, the Dow registered a gain of 0.69%, and the technology-centric Nasdaq increased by 1.64%.
The distributor of water and fire protection products's shares have seen a decrease of 1.68% over the last month, not keeping up with the Industrial Products sector's gain of 9.4% and the S&P 500's gain of 8.59%.
Analysts and investors alike will be keeping a close eye on the performance of Core & Main in its upcoming earnings disclosure. The company is predicted to post an EPS of $0.7, indicating a 34.62% growth compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $1.9 billion, down 0.37% from the prior-year quarter.
CNM's full-year Zacks Consensus Estimates are calling for earnings of $3.11 per share and revenue of $7.91 billion. These results would represent year-over-year changes of +4.71% and +3.48%, respectively.
Investors should also pay attention to any latest changes in analyst estimates for Core & Main. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 1.3% decrease. Core & Main is currently a Zacks Rank #4 (Sell).
Looking at its valuation, Core & Main is holding a Forward P/E ratio of 15.97. This expresses a discount compared to the average Forward P/E of 17.33 of its industry.
One should further note that CNM currently holds a PEG ratio of 1.76. 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. CNM's industry had an average PEG ratio of 1.59 as of yesterday's close.
The Manufacturing - Tools & Related Products industry is part of the Industrial Products sector. With its current Zacks Industry Rank of 58, this industry ranks in the top 24% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the 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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Core & Main, Inc. (CNM): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).