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

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Core & Main (CNM - Free Report) closed at $20.68 in the latest trading session, marking a -0.62% move from the prior day. This change lagged the S&P 500's daily loss of 0.19%. Meanwhile, the Dow gained 0.01%, and the Nasdaq, a tech-heavy index, lost 0.09%.

Heading into today, shares of the distributor of water and fire protection products had lost 0.43% over the past month, lagging the Business Services sector's gain of 6.05% and the S&P 500's gain of 4.7% in that time.

Core & Main will be looking to display strength as it nears its next earnings release, which 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, our latest consensus estimate is calling for revenue of $1.78 billion, up 26.67% from the prior-year quarter.

CNM's full-year Zacks Consensus Estimates are calling for earnings of $1.86 per share and revenue of $6.63 billion. These results would represent year-over-year changes of +124.1% and +32.53%, respectively.

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. With this in mind, we can consider positive estimate revisions a sign of optimism about 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. Within the past 30 days, our consensus EPS projection remained stagnant. Core & Main is currently sporting a Zacks Rank of #2 (Buy).

Investors should also note Core & Main's current valuation metrics, including its Forward P/E ratio of 11.19. Its industry sports an average Forward P/E of 23.64, so we one might conclude that Core & Main is trading at a discount comparatively.

Meanwhile, CNM's PEG ratio is currently 0.81. 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. The Waste Removal Services was holding an average PEG ratio of 2.31 at yesterday's closing price.

The Waste Removal Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 152, which puts it in the bottom 40% 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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