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Core & Main (CNM) Stock Slides as Market Rises: Facts to Know Before You Trade

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Core & Main (CNM - Free Report) closed at $45.07 in the latest trading session, marking a -0.38% move from the prior day. This change lagged the S&P 500's daily gain of 0.16%. Elsewhere, the Dow saw a downswing of 0.37%, while the tech-heavy Nasdaq appreciated by 0.78%.

Heading into today, shares of the distributor of water and fire protection products had gained 1.89% over the past month, outpacing the Industrial Products sector's loss of 0.89% and the S&P 500's gain of 1.67% in that time.

The investment community will be paying close attention to the earnings performance of Core & Main in its upcoming release. The company's upcoming EPS is projected at $0.65, signifying steadiness compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $2 billion, reflecting a 9.51% rise from the equivalent quarter last year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $2.10 per share and a revenue of $7.32 billion, indicating changes of -2.33% and +9.21%, respectively, from the former year.

Investors might also notice recent changes to analyst estimates for Core & Main. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Core & Main currently has a Zacks Rank of #5 (Strong Sell).

With respect to valuation, Core & Main is currently being traded at a Forward P/E ratio of 21.58. This indicates a discount in contrast to its industry's Forward P/E of 22.31.

We can also see that CNM currently has a PEG ratio of 2.94. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Manufacturing - Tools & Related Products was holding an average PEG ratio of 2.79 at yesterday's closing price.

The Manufacturing - Tools & Related Products industry is part of the Industrial Products sector. With its current Zacks Industry Rank of 239, this industry ranks in the bottom 6% of all industries, numbering over 250.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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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