Core & Main (CNM) closed the latest trading day at $51.22, indicating a +0.75% change from the previous session’s end. The stock outperformed the S&P 500, which registered a daily gain of 0.55%. At the same time, the Dow added 0.62%, and the tech-heavy Nasdaq gained 0.63%.
The distributor of water and fire protection products’s shares have seen a decrease of 0.41% over the last month, not keeping up with the Business Services sector’s gain of 0.56% and the S&P 500’s gain of 4.28%.
Investors will be eagerly watching for the performance of Core & Main in its upcoming earnings disclosure. The company is forecasted to report an EPS of $0.73, showcasing a 10.61% upward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $2.03 billion, indicating a 9.04% increase compared to the same quarter of the previous year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $2.32 per share and a revenue of $7.47 billion, indicating changes of +7.91% and +11.42%, respectively, from the former 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. Hence, positive alterations in estimates signify analyst optimism regarding the company’s business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we’ve formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
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. The Zacks Consensus EPS estimate has moved 5.81% lower within the past month. Core & Main currently has a Zacks Rank of #5 (Strong Sell).
Looking at its valuation, Core & Main is holding a Forward P/E ratio of 21.88. For comparison, its industry has an average Forward P/E of 27.97, which means Core & Main is trading at a discount to the group.
Also, we should mention that CNM has a PEG ratio of 1.92. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company’s expected earnings growth rate. The Waste Removal Services industry currently had an average PEG ratio of 2.66 as of yesterday’s close.
The Waste Removal Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 78, which puts it in the top 31% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Core & Main, Inc. (CNM) : Free Stock Analysis Report
