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Core & Main (CNM) Dips More Than Broader Markets: What You Should Know

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In the latest trading session, Core & Main (CNM - Free Report) closed at $20.70, marking a -0.48% move from the previous day. This change lagged the S&P 500's daily loss of 0.09%. Meanwhile, the Dow lost 0.56%, and the Nasdaq, a tech-heavy index, added 0.12%.

Prior to today's trading, shares of the distributor of water and fire protection products had lost 5.54% over the past month. This has lagged the Business Services sector's gain of 4.7% and the S&P 500's gain of 5.55% in that time.

Wall Street will be looking for positivity from Core & Main as it approaches its next earnings report date. This is expected to be December 13, 2022. The company is expected to report EPS of $0.60, up 7.14% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.78 billion, up 26.67% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $1.86 per share and revenue of $6.63 billion, which would represent changes of +124.1% and +32.53%, respectively, from the prior 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. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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 past month, the Zacks Consensus EPS estimate remained stagnant. Core & Main is currently a Zacks Rank #2 (Buy).

Investors should also note Core & Main's current valuation metrics, including its Forward P/E ratio of 11.18. For comparison, its industry has an average Forward P/E of 23.12, which means Core & Main is trading at a discount to the group.

Investors should also note that CNM has a PEG ratio of 0.81 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. CNM's industry had an average PEG ratio of 2.34 as of yesterday's close.

The Waste Removal Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 135, putting it in the bottom 47% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within 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 follow all of these stock-moving metrics, and many more, on Zacks.com.


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