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Why Core & Main (CNM) Dipped More Than Broader Market Today

In the latest market close, Core & Main (CNM) reached $54.59, with a -0.33% movement compared to the previous day. The stock's change was less than the S&P 500's daily loss of 0.22%. Meanwhile, the Dow experienced a rise of 0.06%, and the technology-dominated Nasdaq saw a decrease of 0.52%.

Heading into today, shares of the distributor of water and fire protection products had lost 1.33% over the past month, outpacing the Business Services sector's loss of 4.96% and the S&P 500's loss of 1.66% in that time.

The upcoming earnings release of Core & Main will be of great interest to investors. The company is expected to report EPS of $0.51, up 2% from the prior-year quarter. Alongside, our most recent consensus estimate is anticipating revenue of $1.72 billion, indicating a 9.34% upward movement from the same quarter last year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $2.59 per share and revenue of $7.54 billion. These totals would mark changes of +20.47% and +12.57%, respectively, from last year.

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Investors might also notice recent changes to analyst estimates for Core & Main. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. Within the past 30 days, our consensus EPS projection has moved 5.42% higher. Right now, Core & Main possesses a Zacks Rank of #2 (Buy).

From a valuation perspective, Core & Main is currently exchanging hands at a Forward P/E ratio of 21.12. For comparison, its industry has an average Forward P/E of 25.97, which means Core & Main is trading at a discount to the group.

One should further note that CNM currently holds a PEG ratio of 1.69. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Waste Removal Services industry had an average PEG ratio of 2.67.

The Waste Removal Services industry is part of the Business Services sector. Currently, this industry holds a Zacks Industry Rank of 153, positioning it in the bottom 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.

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

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