In the latest trading session, Core & Main (CNM) closed at $48.64, marking a -1.72% move from the previous day. The stock's change was more than the S&P 500's daily loss of 2.24%. Meanwhile, the Dow lost 1.73%, and the Nasdaq, a tech-heavy index, lost 3.07%.
The the stock of distributor of water and fire protection products has risen by 3.45% in the past month, leading the Industrial Products sector's loss of 8.57% and the S&P 500's loss of 4.17%.
The upcoming earnings release of Core & Main will be of great interest to investors. The company is forecasted to report an EPS of $0.52, showcasing a 6.12% upward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $1.83 billion, indicating a 5.25% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates project earnings of $2.43 per share and a revenue of $7.71 billion, demonstrating changes of +14.08% and +3.66%, respectively, from the preceding year.
Investors should also note any recent changes 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 company's business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, 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 last 30 days, the Zacks Consensus EPS estimate has moved 1.11% higher. Currently, Core & Main is carrying a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Core & Main has a Forward P/E ratio of 20.37 right now. This signifies a premium in comparison to the average Forward P/E of 16.34 for its industry.
We can additionally observe that CNM currently boasts a PEG ratio of 1.87. 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 1.16 based on yesterday's closing prices.
The Manufacturing - Tools & Related Products industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 57, which puts it in the top 23% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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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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