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Core & Main (CNM) Declines More Than Market: Some Information for Investors

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In the latest trading session, Core & Main (CNM - Free Report) closed at $50.55, marking a -0.69% move from the previous day. The stock's performance was behind the S&P 500's daily loss of 0.2%. On the other hand, the Dow registered a loss of 0.15%, and the technology-centric Nasdaq decreased by 0.34%.

Shares of the distributor of water and fire protection products witnessed a loss of 2.32% over the previous month, trailing the performance of the Business Services sector with its gain of 0.88% and the S&P 500's gain of 1.93%.

Investors will be eagerly watching for the performance of Core & Main in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $0.73, reflecting a 10.61% increase from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $2.03 billion, up 9.04% from the prior-year quarter.

For the full year, the Zacks Consensus Estimates are projecting earnings of $2.32 per share and revenue of $7.47 billion, which would represent changes of +7.91% and +11.42%, respectively, from the prior year.

Investors might also notice recent changes to 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.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Core & Main presently features a Zacks Rank of #4 (Sell).

Looking at valuation, Core & Main is presently trading at a Forward P/E ratio of 21.91. Its industry sports an average Forward P/E of 29.36, so one might conclude that Core & Main is trading at a discount comparatively.

Meanwhile, CNM's PEG ratio is currently 1.93. 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. Waste Removal Services stocks are, on average, holding a PEG ratio of 2.62 based on yesterday's closing prices.

The Waste Removal Services industry is part of the Business Services sector. At present, this industry carries a Zacks Industry Rank of 143, placing it within the bottom 44% of over 250 industries.

The Zacks Industry Rank gauges the strength of our 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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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