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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 $32 in the latest trading session, marking a -1.57% move from the prior day. This change lagged the S&P 500's 0.7% loss on the day. Meanwhile, the Dow lost 0.54%, and the Nasdaq, a tech-heavy index, lost 1.17%.

Heading into today, shares of the distributor of water and fire protection products had gained 3.77% over the past month, outpacing the Business Services sector's gain of 1.88% and the S&P 500's gain of 2.35% in that time.

Investors will be hoping for strength from Core & Main as it approaches its next earnings release. The company is expected to report EPS of $0.65, down 26.97% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $1.86 billion, down 0.15% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.82 per share and revenue of $6.77 billion. These totals would mark changes of -14.55% and +1.82%, respectively, from last year.

Investors should also note any 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.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.

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 #1 (Strong Buy).

Digging into valuation, Core & Main currently has a Forward P/E ratio of 17.86. For comparison, its industry has an average Forward P/E of 22.94, which means Core & Main is trading at a discount to the group.

The Waste Removal Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 83, putting it in the top 33% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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