Core & Main (CNM) Stock Declines While Market Improves: Some Information for Investors

The investment community will be paying close attention to the earnings performance of Core & Main in its upcoming release. The company is predicted to post an EPS of $0.93, indicating a 6.9% growth compared to the equivalent quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $2.14 billion, showing a 2.31% escalation compared to the year-ago quarter.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $3.15 per share and a revenue of $7.88 billion, signifying shifts of +6.06% and +3.01%, respectively, from the last year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Core & Main. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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. Over the past month, the Zacks Consensus EPS estimate has shifted 0.65% upward. Core & Main is currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, Core & Main is presently being traded at a Forward P/E ratio of 14.82. This signifies a discount in comparison to the average Forward P/E of 19.39 for its industry.

Investors should also note that CNM has a PEG ratio of 1.57 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Manufacturing - Tools & Related Products stocks are, on average, holding a PEG ratio of 1.52 based on yesterday's closing prices.

The Manufacturing - Tools & Related Products industry is part of the Industrial Products sector. With its current Zacks Industry Rank of 88, this industry ranks in the top 36% of all industries, numbering over 250.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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

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