Core & Main (CNM) closed at $53.98 in the latest trading session, marking a -1.19% move from the prior day. This change lagged the S&P 500's 1.23% gain on the day. Meanwhile, the Dow gained 0.72%, and the Nasdaq, a tech-heavy index, added 1.86%.
The distributor of water and fire protection products's stock has climbed by 3.43% in the past month, exceeding the Industrial Products sector's gain of 2.99% and the S&P 500's gain of 2.45%.
The investment community will be paying close attention to the earnings performance of Core & Main in its upcoming release. In that report, analysts expect Core & Main to post earnings of $0.72 per share. This would mark year-over-year growth of 4.35%. Our most recent consensus estimate is calling for quarterly revenue of $2.08 billion, up 2.03% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $2.24 per share and revenue of $7.67 billion, indicating changes of +5.16% and +3.02%, respectively, compared to the previous year.
It is also important to note the recent changes to analyst estimates for Core & Main. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Right now, Core & Main possesses a Zacks Rank of #5 (Strong Sell).
Digging into valuation, Core & Main currently has a Forward P/E ratio of 24.35. This valuation marks a premium compared to its industry average Forward P/E of 22.52.
Meanwhile, CNM's PEG ratio is currently 2.14. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Manufacturing - Tools & Related Products stocks are, on average, holding a PEG ratio of 1.68 based on yesterday's closing prices.
The Manufacturing - Tools & Related Products industry is part of the Industrial Products sector. With its current Zacks Industry Rank of 68, this industry ranks in the top 28% of all industries, numbering over 250.
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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Core & Main, Inc. (CNM): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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