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

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In the latest market close, Core & Main (CNM - Free Report) reached $57.45, with a +0.56% movement compared to the previous day. This move outpaced the S&P 500's daily loss of 0.6%. Elsewhere, the Dow saw a downswing of 0.86%, while the tech-heavy Nasdaq depreciated by 1.08%.

Shares of the distributor of water and fire protection products witnessed a gain of 0.16% over the previous month, beating the performance of the Business Services sector with its of 0% and underperforming the S&P 500's gain of 3.15%.

The upcoming earnings release of Core & Main will be of great interest to investors. The company's earnings report is expected on June 4, 2024. In that report, analysts expect Core & Main to post earnings of $0.51 per share. This would mark year-over-year growth of 2%. Alongside, our most recent consensus estimate is anticipating revenue of $1.72 billion, indicating a 9.34% upward movement from the same quarter last year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $2.59 per share and revenue of $7.54 billion, indicating changes of +20.47% and +12.57%, respectively, compared to the previous year.

Investors should also pay attention to any latest changes in analyst estimates for Core & Main. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. At present, Core & Main boasts a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Core & Main has a Forward P/E ratio of 22.03 right now. Its industry sports an average Forward P/E of 28.13, so one might conclude that Core & Main is trading at a discount comparatively.

We can additionally observe that CNM currently boasts a PEG ratio of 1.77. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As the market closed yesterday, the Waste Removal Services industry was having an average PEG ratio of 2.54.

The Waste Removal Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 97, putting it in the top 39% 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.

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


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