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 $31.17 in the latest trading session, marking a -0.7% move from the prior day. This change lagged the S&P 500's 0.28% loss on the day. Elsewhere, the Dow lost 0.51%, while the tech-heavy Nasdaq added 0.06%.

Prior to today's trading, shares of the distributor of water and fire protection products had gained 1.32% over the past month. This has outpaced the Business Services sector's loss of 3.82% and the S&P 500's loss of 2.85% in that time.

Core & Main will be looking to display strength as it nears its next earnings release. In that report, analysts expect Core & Main to post earnings of $0.65 per share. This would mark a year-over-year decline of 26.97%. Our most recent consensus estimate is calling for quarterly revenue of $1.86 billion, down 0.15% from the year-ago period.

CNM's full-year Zacks Consensus Estimates are calling for earnings of $1.82 per share and revenue of $6.77 billion. These results would represent year-over-year changes of -14.55% and +1.82%, respectively.

Any recent changes to analyst estimates for Core & Main should also be noted by investors. 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.

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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Core & Main currently has a Zacks Rank of #3 (Hold).

Looking at its valuation, Core & Main is holding a Forward P/E ratio of 17.25. This valuation marks a discount compared to its industry's average Forward P/E of 23.62.

The Waste Removal Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 179, which puts it in the bottom 29% 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.

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