Core & Main (CNM) closed the most recent trading day at $54.19, moving -1.83% from the previous trading session. The stock fell short of the S&P 500, which registered a loss of 0.13% for the day. Elsewhere, the Dow gained 0.11%, while the tech-heavy Nasdaq lost 0.72%.
Heading into today, shares of the distributor of water and fire protection products had gained 6.22% over the past month, lagging the Industrial Products sector's gain of 6.7% and outpacing the S&P 500's gain of 0.78%.
The upcoming earnings release of Core & Main will be of great interest to investors. The company's earnings per share (EPS) are projected to be $0.48, reflecting a 45.45% increase from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $1.58 billion, reflecting a 6.82% fall from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $2.93 per share and revenue of $7.66 billion, which would represent changes of +37.56% and +2.98%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Core & Main. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Core & Main is holding a Zacks Rank of #1 (Strong Buy) right now.
From a valuation perspective, Core & Main is currently exchanging hands at a Forward P/E ratio of 18.84. This indicates a discount in contrast to its industry's Forward P/E of 19.77.
Also, we should mention that CNM has a PEG ratio of 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. By the end of yesterday's trading, the Manufacturing - Tools & Related Products industry had an average PEG ratio of 1.62.
The Manufacturing - Tools & Related Products industry is part of the Industrial Products sector. At present, this industry carries a Zacks Industry Rank of 16, placing it within the top 7% of over 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 ReportThis article originally published on Zacks Investment Research (zacks.com).
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