In the latest trading session, Core & Main (CNM) closed at $61.58, marking a -1.11% move from the previous day. The stock's performance was behind the S&P 500's daily loss of 0.33%. Elsewhere, the Dow saw a downswing of 0.63%, while the tech-heavy Nasdaq depreciated by 0.22%.
Shares of the distributor of water and fire protection products witnessed a gain of 9.78% over the previous month, beating the performance of the Industrial Products sector with its gain of 6.25%, and the S&P 500's gain of 4.07%.
The investment community will be closely monitoring the performance of Core & Main in its forthcoming earnings report. The company is forecasted to report an EPS of $0.78, showcasing a 27.87% upward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $2.11 billion, reflecting a 7.54% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $2.46 per share and a revenue of $7.75 billion, demonstrating changes of +15.49% and +4.11%, respectively, from the preceding year.
Investors might also notice recent changes to analyst estimates for Core & Main. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, 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, there's been a 1.03% rise in the Zacks Consensus EPS estimate. Right now, Core & Main possesses a Zacks Rank of #3 (Hold).
Looking at its valuation, Core & Main is holding a Forward P/E ratio of 25.36. This represents a premium compared to its industry average Forward P/E of 17.9.
Meanwhile, CNM's PEG ratio is currently 1.84. 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. By the end of yesterday's trading, the Manufacturing – Tools & Related Products industry had an average PEG ratio of 1.65.
The Manufacturing – Tools & Related Products industry is part of the Industrial Products sector. With its current Zacks Industry Rank of 165, this industry ranks in the bottom 34% of all industries, numbering over 250.
