The most recent trading session ended with Core & Main (CNM) standing at $56.73, reflecting a +1.21% shift from the previouse trading day's closing. The stock outpaced the S&P 500's daily gain of 0.92%. Elsewhere, the Dow saw an upswing of 0.31%, while the tech-heavy Nasdaq appreciated by 2.03%.
The distributor of water and fire protection products's stock has climbed by 10.4% in the past month, exceeding the Industrial Products sector's gain of 3.83% and the S&P 500's gain of 0.81%.
The investment community will be paying close attention to the earnings performance of Core & Main in its upcoming release. On that day, Core & Main is projected to report earnings of $0.36 per share, which would represent year-over-year growth of 5.88%. Meanwhile, the latest consensus estimate predicts the revenue to be $1.68 billion, indicating a 16.67% increase compared to the same quarter of the previous year.
CNM's full-year Zacks Consensus Estimates are calling for earnings of $2.16 per share and revenue of $7.42 billion. These results would represent year-over-year changes of +0.47% and +10.76%, respectively.
Investors should also pay attention to any latest changes in analyst estimates for Core & Main. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Core & Main is currently sporting a Zacks Rank of #2 (Buy).
Investors should also note Core & Main's current valuation metrics, including its Forward P/E ratio of 25.91. Its industry sports an average Forward P/E of 18.66, so one might conclude that Core & Main is trading at a premium comparatively.
Meanwhile, CNM's PEG ratio is currently 3.1. 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. 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. With its current Zacks Industry Rank of 162, this industry ranks in the bottom 36% of all industries, numbering over 250.
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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
