Core & Main (CNM) Sees a More Significant Dip Than Broader Market: Some Facts to Know
Core & Main (CNM) ended the recent trading session at $56.34, demonstrating a -1.47% swing from the preceding day's closing price. The stock's change was less than the S&P 500's daily loss of 1.46%. Meanwhile, the Dow lost 1.24%, and the Nasdaq, a tech-heavy index, lost 1.63%.
The distributor of water and fire protection products's stock has climbed by 13.72% in the past month, exceeding the Business Services sector's loss of 1.27% and the S&P 500's gain of 1.6%.
Market participants will be closely following the financial results of Core & Main in its upcoming release. In that report, analysts expect Core & Main to post earnings of $0.51 per share. This would mark year-over-year growth of 2%. Meanwhile, the latest consensus estimate predicts the revenue to be $1.72 billion, indicating a 9.34% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $2.59 per share and revenue of $7.54 billion, which would represent changes of +20.47% and +12.57%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Core & Main. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent 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, 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. The Zacks Consensus EPS estimate has moved 5.42% higher within the past month. Right now, Core & Main possesses a Zacks Rank of #1 (Strong Buy).
Looking at valuation, Core & Main is presently trading at a Forward P/E ratio of 22.05. This indicates a discount in contrast to its industry's Forward P/E of 27.26.
Investors should also note that CNM has a PEG ratio of 1.77 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. CNM's industry had an average PEG ratio of 2.73 as of yesterday's close.
The Waste Removal Services industry is part of the Business Services sector. This industry, currently bearing a Zacks Industry Rank of 176, finds itself in the bottom 31% echelons of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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Core & Main, Inc. (CNM) : Free Stock Analysis Report
