Core & Main (CNM) Registers a Bigger Fall Than the Market: Important Facts to Note

In the latest trading session, Core & Main (CNM) closed at $53.89, marking a -1.43% move from the previous day. The stock's change was less than the S&P 500's daily loss of 0.94%. Meanwhile, the Dow experienced a drop of 0.83%, and the technology-dominated Nasdaq saw a decrease of 1.02%.

The distributor of water and fire protection products's shares have seen an increase of 0.13% over the last month, not keeping up with the Industrial Products sector's gain of 7.23% and outstripping the S&P 500's loss of 1.3%.

Market participants will be closely following the financial results of Core & Main in its upcoming release. The company's upcoming EPS is projected at $0.48, signifying a 45.45% increase compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $1.58 billion, indicating a 6.82% downward movement from the same quarter last year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $2.93 per share and revenue of $7.66 billion, which would represent changes of +37.56% and +2.98%, respectively, from the prior year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts 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 business outlook.

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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Core & Main presently features a Zacks Rank of #3 (Hold).

In terms of valuation, Core & Main is presently being traded at a Forward P/E ratio of 17.16. This represents a discount compared to its industry average Forward P/E of 19.89.

Also, we should mention that CNM has a PEG ratio of 1.95. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Manufacturing - Tools & Related Products industry currently had an average PEG ratio of 1.82 as of yesterday's close.

The Manufacturing - Tools & Related Products industry is part of the Industrial Products sector. At present, this industry carries a Zacks Industry Rank of 90, placing it within the top 37% of over 250 industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.