In the latest trading session, Core & Main (CNM) closed at $53.36, marking a -1.08% move from the previous day. The stock fell short of the S&P 500, which registered a gain of 0.8% for the day. At the same time, the Dow lost 0.15%, and the tech-heavy Nasdaq gained 1.6%.
The distributor of water and fire protection products's stock has climbed by 11.72% in the past month, exceeding the Industrial Products sector's gain of 8.08% and the S&P 500's gain of 5.15%.
Market participants will be closely following the financial results of Core & Main in its upcoming release. The company's earnings per share (EPS) are projected to be $0.7, reflecting a 34.62% increase from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.9 billion, down 0.37% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $3.11 per share and revenue of $7.89 billion, indicating changes of +4.71% and +3.18%, respectively, compared to the previous year.
Investors should also take note of any recent adjustments to analyst estimates for Core & Main. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1.3% lower. Right now, Core & Main possesses a Zacks Rank of #4 (Sell).
Looking at its valuation, Core & Main is holding a Forward P/E ratio of 17.33. Its industry sports an average Forward P/E of 18.08, 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 1.91. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. By the end of yesterday's trading, the Manufacturing - Tools & Related Products industry had an average PEG ratio of 1.62.
The Manufacturing - Tools & Related Products industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 97, which puts it in the top 40% of all 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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Core & Main, Inc. (CNM): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).