Why Core & Main (CNM) Outpaced the Stock Market Today
Core & Main (CNM) closed the most recent trading day at $65.47, moving +2.76% from the previous trading session. The stock's change was more than the S&P 500's daily gain of 1.14%. Elsewhere, the Dow gained 1.1%, while the tech-heavy Nasdaq added 1.39%.
The distributor of water and fire protection products's stock has climbed by 4.1% in the past month, exceeding the Industrial Products sector's loss of 1.23% and the S&P 500's gain of 2%.
The investment community will be closely monitoring the performance of Core & Main in its forthcoming earnings report. The company is expected to report EPS of $0.78, up 27.87% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $2.11 billion, showing a 7.54% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $2.46 per share and revenue of $7.75 billion, which would represent changes of +15.49% and +4.11%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Core & Main. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Over the past month, the Zacks Consensus EPS estimate has remained steady. Core & Main presently features a Zacks Rank of #3 (Hold).
From a valuation perspective, Core & Main is currently exchanging hands at a Forward P/E ratio of 25.95. This signifies a premium in comparison to the average Forward P/E of 19.23 for its industry.
One should further note that CNM currently holds a PEG ratio of 1.88. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Manufacturing - Tools & Related Products was holding an average PEG ratio of 1.68 at yesterday's closing price.
The Manufacturing - Tools & Related Products industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 200, putting it in the bottom 20% of all 250+ industries.
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.
To follow CNM in the coming trading sessions, be sure to utilize Zacks.com.
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This article originally published on Zacks Investment Research (zacks.com).
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