Core & Main (CNM) closed at $64.34 in the latest trading session, marking a -1.76% move from the prior day. The stock trailed the S&P 500, which registered a daily loss of 0.43%. On the other hand, the Dow registered a loss of 0.77%, and the technology-centric Nasdaq decreased by 0.22%.
The distributor of water and fire protection products's shares have seen a decrease of 0.43% over the last month, not keeping up with the Industrial Products sector's gain of 0.84% and the S&P 500's gain of 2.65%.
The upcoming earnings release of Core & Main will be of great interest to investors. The company's upcoming EPS is projected at $0.78, signifying a 27.87% increase compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $2.11 billion, up 7.54% from the prior-year quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $2.46 per share and revenue of $7.75 billion. These totals would mark changes of +15.49% and +4.11%, respectively, from last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Core & Main. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. The Zacks Consensus EPS estimate remained stagnant within the past month. At present, Core & Main boasts a Zacks Rank of #3 (Hold).
Digging into valuation, Core & Main currently has a Forward P/E ratio of 26.68. This expresses a premium compared to the average Forward P/E of 19.93 of its industry.
Investors should also note that CNM has a PEG ratio of 1.93 right now. 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. By the end of yesterday's trading, the Manufacturing – Tools & Related Products industry had an average PEG ratio of 1.73.
The Manufacturing – Tools & Related Products industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 225, putting it in the bottom 9% of all 250+ industries.
