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Core & Main (CNM) Rises As Market Takes a Dip: Key Facts

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The most recent trading session ended with Core & Main (CNM - Free Report) standing at $29.47, reflecting a +0.58% shift from the previouse trading day's closing. The stock outpaced the S&P 500's daily loss of 1.18%. Elsewhere, the Dow lost 0.76%, while the tech-heavy Nasdaq lost 1.76%.

Heading into today, shares of the distributor of water and fire protection products had gained 1.88% over the past month, outpacing the Business Services sector's loss of 4.13% and the S&P 500's loss of 3.35% in that time.

The upcoming earnings release of Core & Main will be of great interest to investors. The company's upcoming EPS is projected at $0.66, signifying a 1.54% increase compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.88 billion, up 3.39% from the year-ago period.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $2.03 per share and revenue of $6.68 billion. These totals would mark changes of -4.69% and +0.51%, respectively, from last year.

Any recent changes to analyst estimates for Core & Main should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

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 #1 (Strong Buy).

From a valuation perspective, Core & Main is currently exchanging hands at a Forward P/E ratio of 14.47. This indicates a discount in contrast to its industry's Forward P/E of 21.94.

We can additionally observe that CNM currently boasts a PEG ratio of 1.39. 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. By the end of yesterday's trading, the Waste Removal Services industry had an average PEG ratio of 2.76.

The Waste Removal Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 60, putting it in the top 24% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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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