Back to top

Image: Bigstock

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

Read MoreHide Full Article

Core & Main (CNM - Free Report) closed at $30.93 in the latest trading session, marking a -2% move from the prior day. This change lagged the S&P 500's daily loss of 0.68%. Meanwhile, the Dow gained 0.47%, and the Nasdaq, a tech-heavy index, lost 3.19%.

Prior to today's trading, shares of the distributor of water and fire protection products had gained 8.83% over the past month. This has outpaced the Business Services sector's gain of 2.88% and the S&P 500's gain of 3.58% in that time.

Wall Street will be looking for positivity from Core & Main as it approaches its next earnings report date. On that day, Core & Main is projected to report earnings of $0.65 per share, which would represent a year-over-year decline of 26.97%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.86 billion, down 0.15% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $1.82 per share and revenue of $6.77 billion, which would represent changes of -14.55% and +1.82%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for Core & Main. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 7.86% higher. Core & Main is currently a Zacks Rank #1 (Strong Buy).

Digging into valuation, Core & Main currently has a Forward P/E ratio of 17.34. This valuation marks a discount compared to its industry's average Forward P/E of 23.32.

The Waste Removal Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 124, putting it in the top 50% of all 250+ industries.

The Zacks Industry Rank includes is listed in order 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Core & Main, Inc. (CNM) - free report >>

Published in