Core & Main (CNM) Gains But Lags Market: What You Should Know

Analysts and investors alike will be keeping a close eye on the performance of Core & Main in its upcoming earnings disclosure. In that report, analysts expect Core & Main to post earnings of $0.93 per share. This would mark year-over-year growth of 6.9%. At the same time, our most recent consensus estimate is projecting a revenue of $2.14 billion, reflecting a 2.31% rise from the equivalent quarter last year.

CNM's full-year Zacks Consensus Estimates are calling for earnings of $3.15 per share and revenue of $7.88 billion. These results would represent year-over-year changes of +6.06% and +1.46%, respectively.

It's also important for investors to be aware of any recent modifications to analyst estimates for Core & Main. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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 has moved 0.65% higher within the past month. Core & Main is currently sporting a Zacks Rank of #2 (Buy).

Valuation is also important, so investors should note that Core & Main has a Forward P/E ratio of 14.54 right now. Its industry sports an average Forward P/E of 18.67, so one might conclude that Core & Main is trading at a discount comparatively.

Meanwhile, CNM's PEG ratio is currently 1.54. 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. As the market closed yesterday, the Manufacturing - Tools & Related Products industry was having an average PEG ratio of 1.42.

The Manufacturing - Tools & Related Products industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 193, which puts it in the bottom 22% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. 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.

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This article originally published on Zacks Investment Research (zacks.com).

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