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Core & Main (CNM) Gains As Market Dips: What You Should Know

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Core & Main (CNM - Free Report) closed at $31.57 in the latest trading session, marking a +0.89% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.02%. Meanwhile, the Dow gained 0.23%, and the Nasdaq, a tech-heavy index, lost 0.12%.

Heading into today, shares of the distributor of water and fire protection products had gained 3.27% over the past month, lagging the Business Services sector's gain of 4.14% and the S&P 500's gain of 5.14% in that time.

Wall Street will be looking for positivity from Core & Main as it approaches its next earnings report date. The company is expected to report EPS of $0.65, down 26.97% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue 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. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Core & Main is currently sporting a Zacks Rank of #1 (Strong Buy).

Digging into valuation, Core & Main currently has a Forward P/E ratio of 17.19. This valuation marks a discount compared to its industry's average Forward P/E of 23.43.

The Waste Removal Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 110, which puts it in the top 44% 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.

To follow CNM in the coming trading sessions, be sure to utilize Zacks.com.


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