Core & Main (CNM) closed the most recent trading day at $57.83, moving +1.96% from the previous trading session. The stock's performance was ahead of the S&P 500's daily loss of 0.33%. Elsewhere, the Dow gained 0.1%, while the tech-heavy Nasdaq lost 0.59%.
Heading into today, shares of the distributor of water and fire protection products had gained 0.39% over the past month, lagging the Industrial Products sector's gain of 11.29% and outpacing the S&P 500's loss of 0%.
Analysts and investors alike will be keeping a close eye on the performance of Core & Main in its upcoming earnings disclosure. The company's upcoming EPS is projected at $0.48, signifying a 45.45% increase compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $1.58 billion, down 6.82% from the prior-year quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $2.93 per share and revenue of $7.66 billion, indicating changes of +37.56% and +2.98%, respectively, compared to the previous year.
Investors should also note any recent changes to analyst estimates for Core & Main. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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 remained unchanged. Core & Main currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Core & Main is presently being traded at a Forward P/E ratio of 17.8. For comparison, its industry has an average Forward P/E of 20.42, which means Core & Main is trading at a discount to the group.
Investors should also note that CNM has a PEG ratio of 2.02 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Manufacturing - Tools & Related Products stocks are, on average, holding a PEG ratio of 1.83 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 70, which puts it in the top 29% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding 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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