Why Core & Main (CNM) Outpaced the Stock Market Today
The most recent trading session ended with Core & Main (CNM) standing at $54.84, reflecting a +0.26% shift from the previouse trading day’s closing. The stock’s performance was ahead of the S&P 500’s daily gain of 0.03%. At the same time, the Dow added 0.28%, and the tech-heavy Nasdaq lost 0.36%.
Heading into today, shares of the distributor of water and fire protection products had gained 5.7% over the past month, outpacing the Industrial Products sector’s gain of 3.88% and the S&P 500’s gain of 4.19% in that time.
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 $0.36, showcasing a 5.88% upward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $1.68 billion, reflecting a 16.67% rise from the equivalent quarter last year.
Investors should also pay attention to any latest changes in analyst estimates for Core & Main. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.
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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Core & Main is holding a Zacks Rank of #3 (Hold) right now.
In the context of valuation, Core & Main is at present trading with a Forward P/E ratio of 22.76. This signifies a premium in comparison to the average Forward P/E of 17.93 for its industry.
One should further note that CNM currently holds a PEG ratio of 2.72. 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. By the end of yesterday’s trading, the Manufacturing – Tools & Related Products industry had an average PEG ratio of 1.34.
The Manufacturing – Tools & Related Products industry is part of the Industrial Products sector. At present, this industry carries a Zacks Industry Rank of 86, placing it within the top 35% of over 250 industries.
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