California Public Employees Retirement System decreased its position in Core & Main, Inc. (NYSE:CNM – Free Report) by 3.2% during the first quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor owned 396,840 shares of the company’s stock after selling 13,197 shares during the period. California Public Employees Retirement System owned approximately 0.20% of Core & Main worth $19,604,000 at the end of the most recent reporting period.
Other large investors have also bought and sold shares of the company. Assenagon Asset Management S.A. increased its position in Core & Main by 881.9% during the fourth quarter. Assenagon Asset Management S.A. now owns 52,963 shares of the company’s stock valued at $2,752,000 after acquiring an additional 47,569 shares during the last quarter. KBC Group NV lifted its position in shares of Core & Main by 11.6% during the 4th quarter. KBC Group NV now owns 2,618,916 shares of the company’s stock valued at $136,105,000 after buying an additional 272,258 shares in the last quarter. Impax Asset Management Group plc lifted its holdings in Core & Main by 10.8% during the fourth quarter. Impax Asset Management Group plc now owns 2,872,595 shares of the company’s stock valued at $149,289,000 after purchasing an additional 279,373 shares in the last quarter. Thomasville National Bank bought a new position in shares of Core & Main in the fourth quarter worth approximately $11,112,000. Finally, Oak Thistle LLC purchased a new stake in shares of Core & Main in the fourth quarter worth $509,000. 94.19% of the stock is owned by hedge funds and other institutional investors.
Insider Transactions at Core & Main In other news, Director James D. Hope bought 2,067 shares of Core & Main stock in a transaction that occurred on Monday, July 6th. The stock was bought at an average price of $46.01 per share, for a total transaction of $95,102.67. Following the purchase, the director directly owned 11,805 shares of the company’s stock, valued at approximately $543,148.05. The trade was a 21.23% increase in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Insiders own 1.51% of the company’s stock.
Wall Street Analysts Forecast Growth A number of equities research analysts have issued reports on the stock. Deutsche Bank Aktiengesellschaft cut their price objective on shares of Core & Main from $65.00 to $62.00 and set a “buy” rating for the company in a report on Wednesday, March 25th. Citigroup lowered their price objective on shares of Core & Main from $54.00 to $53.00 and set a “neutral” rating for the company in a research report on Thursday, June 11th. The Goldman Sachs Group reaffirmed a “neutral” rating and issued a $24.00 price target on shares of Core & Main in a report on Thursday, June 11th. Finally, Barclays reduced their price objective on Core & Main from $63.00 to $62.00 and set an “overweight” rating on the stock in a research note on Wednesday, March 25th. Seven investment analysts have rated the stock with a Buy rating and five have issued a Hold rating to the stock. According to MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average target price of $57.73.
View Our Latest Stock Analysis on CNM
Core & Main Trading Up 0.9% Shares of NYSE CNM opened at $43.75 on Thursday. The business has a fifty day moving average price of $47.48 and a 200 day moving average price of $50.95. Core & Main, Inc. has a 1-year low of $42.50 and a 1-year high of $67.18. The company has a debt-to-equity ratio of 1.00, a current ratio of 2.31 and a quick ratio of 1.31. The stock has a market capitalization of $8.47 billion, a P/E ratio of 18.54, a price-to-earnings-growth ratio of 1.50 and a beta of 0.91.
About Core & Main (Free Report)
Core & Main, Inc (NYSE:CNM) is a leading distributor of water, sewer, storm drainage and fire protection products across North America. The company’s product portfolio includes valves, hydrants, pipe and fittings, meters, couplings and other essential components that support municipal, industrial and environmental infrastructure projects. By combining a comprehensive inventory with logistics and technical support, Core & Main helps customers address complex water system and distribution challenges.
With more than 300 branch locations and over 3,500 employees, Core & Main serves a diverse customer base that includes municipalities, contractors, engineers and utility providers.
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Investors interested in stocks from the Manufacturing - Tools & Related Products sector have probably already heard of Core & Main (CNM - Free Report) and Lincoln Electric Holdings (LECO - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Core & Main has a Zacks Rank of #2 (Buy), while Lincoln Electric Holdings has a Zacks Rank of #3 (Hold) right now. This means that CNM's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one factor that value investors are interested in.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
CNM currently has a forward P/E ratio of 13.86, while LECO has a forward P/E of 22.94. We also note that CNM has a PEG ratio of 1.47. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. LECO currently has a PEG ratio of 1.53.
Another notable valuation metric for CNM is its P/B ratio of 3.98. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, LECO has a P/B of 9.03.
Based on these metrics and many more, CNM holds a Value grade of B, while LECO has a Value grade of D.
CNM is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that CNM is likely the superior value option right now.
Core & Main (CNM - Free Report) closed at $43.37 in the latest trading session, marking a -1.05% move from the prior day. The stock's change was less than the S&P 500's daily gain of 0.89%. On the other hand, the Dow registered a gain of 0.74%, and the technology-centric Nasdaq increased by 1.29%.
The stock of distributor of water and fire protection products has fallen by 7.24% in the past month, lagging the Industrial Products sector's loss of 5.7% and the S&P 500's loss of 0.63%.
The upcoming earnings release of Core & Main will be of great interest to investors. The company is expected to report EPS of $0.94, up 8.05% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $2.14 billion, up 2.42% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $3.13 per share and revenue of $7.89 billion. These totals would mark changes of +5.39% and +3.12%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Core & Main. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. At present, Core & Main boasts a Zacks Rank of #2 (Buy).
Looking at its valuation, Core & Main is holding a Forward P/E ratio of 14. Its industry sports an average Forward P/E of 17.27, so one might conclude that Core & Main is trading at a discount comparatively.
One should further note that CNM currently holds a PEG ratio of 1.49. 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 average PEG ratio for the Manufacturing - Tools & Related Products industry stood at 1.37 at the close of the market yesterday.
The Manufacturing - Tools & Related Products industry is part of the Industrial Products sector. Currently, this industry holds a Zacks Industry Rank of 190, positioning it in the bottom 23% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within 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.
Core & Main (CNM - Free Report) closed at $44.66 in the latest trading session, marking a -1.24% move from the prior day. This move lagged the S&P 500's daily gain of 0.38%. On the other hand, the Dow registered a gain of 0.29%, and the technology-centric Nasdaq increased by 0.62%.
Coming into today, shares of the distributor of water and fire protection products had lost 5.34% in the past month. In that same time, the Industrial Products sector gained 0.99%, while the S&P 500 gained 1.61%.
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 $0.94, showcasing a 8.05% upward movement from the corresponding quarter of the prior year. Meanwhile, our latest consensus estimate is calling for revenue of $2.14 billion, up 2.42% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates project earnings of $3.13 per share and a revenue of $7.89 billion, demonstrating changes of +5.39% and +3.12%, respectively, from the preceding year.
Investors might also notice recent changes to analyst estimates for Core & Main. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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.
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 remained steady. Core & Main currently has a Zacks Rank of #2 (Buy).
Digging into valuation, Core & Main currently has a Forward P/E ratio of 14.45. This indicates a discount in contrast to its industry's Forward P/E of 17.31.
Meanwhile, CNM's PEG ratio is currently 1.53. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Manufacturing - Tools & Related Products industry had an average PEG ratio of 1.22.
The Manufacturing - Tools & Related Products industry is part of the Industrial Products sector. At present, this industry carries a Zacks Industry Rank of 107, placing it within the top 44% of over 250 industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within 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 follow all of these stock-moving metrics, and many more, on Zacks.com.
Investors interested in Manufacturing - Tools & Related Products stocks are likely familiar with Core & Main (CNM - Free Report) and Lincoln Electric Holdings (LECO - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Core & Main and Lincoln Electric Holdings are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This means that CNM's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is only part of the picture for value investors.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
CNM currently has a forward P/E ratio of 14.35, while LECO has a forward P/E of 23.87. We also note that CNM has a PEG ratio of 1.52. 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. LECO currently has a PEG ratio of 1.59.
Another notable valuation metric for CNM is its P/B ratio of 4.13. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, LECO has a P/B of 9.37.
Based on these metrics and many more, CNM holds a Value grade of B, while LECO has a Value grade of D.
CNM is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that CNM is likely the superior value option right now.
The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price. Do they really matter, though?
Let's take a look at what these Wall Street heavyweights have to say about Core & Main (CNM - Free Report) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.
Core & Main currently has an average brokerage recommendation (ABR) of 2.00, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 14 brokerage firms. An ABR of 2.00 indicates Buy.
Of the 14 recommendations that derive the current ABR, seven are Strong Buy and one is Buy. Strong Buy and Buy respectively account for 50% and 7.1% of all recommendations.
Brokerage Recommendation Trends for CNM
Check price target & stock forecast for Core & Main here>>>
While the ABR calls for buying Core & Main, it may not be wise to make an investment decision solely based on this information. Several studies have shown limited to no success of brokerage recommendations in guiding investors to pick stocks with the best price increase potential.
Do you wonder why? As a result of the vested interest of brokerage firms in a stock they cover, their analysts tend to rate it with a strong positive bias. According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation.
In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement.
With an impressive externally audited track record, our proprietary stock rating tool, the Zacks Rank, which classifies stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), is a reliable indicator of a stock's near-term price performance. So, validating the Zacks Rank with ABR could go a long way in making a profitable investment decision.
Zacks Rank Should Not Be Confused With ABRAlthough both Zacks Rank and ABR are displayed in a range of 1--5, they are different measures altogether.
The ABR is calculated solely based on brokerage recommendations and is typically displayed with decimals (example: 1.28). In contrast, the Zacks Rank is a quantitative model allowing investors to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
It has been and continues to be the case that analysts employed by brokerage firms are overly optimistic with their recommendations. Because of their employers' vested interests, these analysts issue more favorable ratings than their research would support, misguiding investors far more often than helping them.
On the other hand, earnings estimate revisions are at the core of the Zacks Rank. And empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
In addition, the different Zacks Rank grades are applied proportionately to all stocks for which brokerage analysts provide current-year earnings estimates. In other words, this tool always maintains a balance among its five ranks.
Another key difference between the ABR and Zacks Rank is freshness. The ABR is not necessarily up-to-date when you look at it. But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements.
Is CNM a Good Investment?Looking at the earnings estimate revisions for Core & Main, the Zacks Consensus Estimate for the current year has increased 0.5% over the past month to $3.13.
Analysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason for the stock to soar in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #2 (Buy) for Core & Main. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Therefore, the Buy-equivalent ABR for Core & Main may serve as a useful guide for investors.
Investors looking for stocks in the Manufacturing - Tools & Related Products sector might want to consider either Core & Main (CNM) or Lincoln Electric Holdings (LECO). But which of these two companies is the best option for those looking for undervalued stocks?
Core & Main is a durable growth platform in water infrastructure, supported by structural demand and disciplined execution. CNM's diversified end markets and scale have enabled 16 consecutive years of sales growth, with recent margin expansion and above-market organic growth. Structural drivers include aging U.S. water systems, complex infrastructure projects, and incremental demand from AI and data center growth.
Core & Main (CNM - Free Report) closed the most recent trading day at $49.51, moving -1.63% from the previous trading session. The stock fell short of the S&P 500, which registered a loss of 0.49% for the day. At the same time, the Dow lost 0.05%, and the tech-heavy Nasdaq lost 0.9%.
Coming into today, shares of the distributor of water and fire protection products had gained 5.4% in the past month. In that same time, the Industrial Products sector gained 9.05%, while the S&P 500 gained 12.8%.
The investment community will be closely monitoring the performance of Core & Main in its forthcoming earnings report. It is anticipated that the company will report an EPS of $0.7, marking a 34.62% rise compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $1.9 billion, showing a 0.37% drop compared to the year-ago quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $3.11 per share and revenue of $7.91 billion. These totals would mark changes of +4.71% and +3.48%, respectively, from last year.
Any recent changes to analyst estimates for Core & Main should also be noted by investors. Recent revisions tend to reflect the latest near-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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Core & Main currently has a Zacks Rank of #4 (Sell).
Looking at valuation, Core & Main is presently trading at a Forward P/E ratio of 16.17. This expresses a discount compared to the average Forward P/E of 17.45 of its industry.
We can also see that CNM currently has a PEG ratio of 1.78. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Manufacturing - Tools & Related Products industry had an average PEG ratio of 1.45.
The Manufacturing - Tools & Related Products industry is part of the Industrial Products sector. Currently, this industry holds a Zacks Industry Rank of 24, positioning it in the top 10% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within 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.
Core & Main (CNM - Free Report) ended the recent trading session at $47.50, demonstrating a -2.88% change from the preceding day's closing price. This move lagged the S&P 500's daily loss of 0.16%. Meanwhile, the Dow gained 0.11%, and the Nasdaq, a tech-heavy index, lost 0.71%.
The distributor of water and fire protection products's stock has dropped by 8.68% in the past month, falling short of the Industrial Products sector's gain of 2.1% and the S&P 500's gain of 8.81%.
Market participants will be closely following the financial results of Core & Main in its upcoming release. The company is expected to report EPS of $0.7, up 34.62% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $1.9 billion, down 0.37% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $3.11 per share and a revenue of $7.91 billion, representing changes of +4.71% and +3.48%, respectively, from the prior year.
Investors should also note any recent changes 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Currently, Core & Main is carrying a Zacks Rank of #4 (Sell).
In terms of valuation, Core & Main is currently trading at a Forward P/E ratio of 15.71. This expresses a discount compared to the average Forward P/E of 17.1 of its industry.
We can additionally observe that CNM currently boasts a PEG ratio of 1.73. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Manufacturing - Tools & Related Products stocks are, on average, holding a PEG ratio of 1.37 based on yesterday's closing prices.
The Manufacturing - Tools & Related Products industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 188, putting it in the bottom 23% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?
Let's take a look at what these Wall Street heavyweights have to say about Core & Main (CNM - Free Report) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.
Core & Main currently has an average brokerage recommendation (ABR) of 1.93, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 15 brokerage firms. An ABR of 1.93 approximates between Strong Buy and Buy.
Of the 15 recommendations that derive the current ABR, eight are Strong Buy and one is Buy. Strong Buy and Buy respectively account for 53.3% and 6.7% of all recommendations.
Brokerage Recommendation Trends for CNM
Check price target & stock forecast for Core & Main here>>>
While the ABR calls for buying Core & Main, it may not be wise to make an investment decision solely based on this information. Several studies have shown limited to no success of brokerage recommendations in guiding investors to pick stocks with the best price increase potential.
Are you wondering why? The vested interest of brokerage firms in a stock they cover often results in a strong positive bias of their analysts in rating it. Our research shows that for every "Strong Sell" recommendation, brokerage firms assign five "Strong Buy" recommendations.
In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement.
With an impressive externally audited track record, our proprietary stock rating tool, the Zacks Rank, which classifies stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), is a reliable indicator of a stock's near-term price performance. So, validating the Zacks Rank with ABR could go a long way in making a profitable investment decision.
Zacks Rank Should Not Be Confused With ABRAlthough both Zacks Rank and ABR are displayed in a range of 1--5, they are different measures altogether.
Broker recommendations are the sole basis for calculating the ABR, which is typically displayed in decimals (such as 1.28). The Zacks Rank, on the other hand, is a quantitative model designed to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
Analysts employed by brokerage firms have been and continue to be overly optimistic with their recommendations. Since the ratings issued by these analysts are more favorable than their research would support because of the vested interest of their employers, they mislead investors far more often than they guide.
In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research.
Furthermore, the different grades of the Zacks Rank are applied proportionately across all stocks for which brokerage analysts provide earnings estimates for the current year. In other words, at all times, this tool maintains a balance among the five ranks it assigns.
Another key difference between the ABR and Zacks Rank is freshness. The ABR is not necessarily up-to-date when you look at it. But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements.
Should You Invest in CNM?Looking at the earnings estimate revisions for Core & Main, the Zacks Consensus Estimate for the current year has declined 0.5% over the past month to $3.11.
Analysts' growing pessimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates lower, could be a legitimate reason for the stock to plunge in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #4 (Sell) for Core & Main. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Therefore, it could be wise to take the Buy-equivalent ABR for Core & Main with a grain of salt.
In the latest close session, Core & Main (CNM - Free Report) was down 1.37% at $46.13. This change lagged the S&P 500's 0.07% loss on the day. Meanwhile, the Dow experienced a rise of 0.32%, and the technology-dominated Nasdaq saw a decrease of 0.51%.
The distributor of water and fire protection products's stock has dropped by 7.91% in the past month, falling short of the Industrial Products sector's gain of 0.71% and the S&P 500's gain of 5.58%.
The investment community will be closely monitoring the performance of Core & Main in its forthcoming earnings report. The company is forecasted to report an EPS of $0.7, showcasing a 34.62% upward movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $1.9 billion, down 0.37% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $3.11 per share and a revenue of $7.91 billion, indicating changes of +4.71% and +3.48%, respectively, from the former year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Core & Main. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming 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.
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 remained steady. Core & Main is currently a Zacks Rank #4 (Sell).
Digging into valuation, Core & Main currently has a Forward P/E ratio of 15.02. For comparison, its industry has an average Forward P/E of 16.4, which means Core & Main is trading at a discount to the group.
We can also see that CNM currently has a PEG ratio of 1.65. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Manufacturing - Tools & Related Products industry currently had an average PEG ratio of 1.28 as of yesterday's close.
The Manufacturing - Tools & Related Products industry is part of the Industrial Products sector. Currently, this industry holds a Zacks Industry Rank of 158, positioning it in the bottom 36% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
Core & Main (CNM - Free Report) ended the recent trading session at $50.48, demonstrating a +2.85% change from the preceding day's closing price. This change outpaced the S&P 500's 0.13% gain on the day. On the other hand, the Dow registered a gain of 0.45%, and the technology-centric Nasdaq increased by 0.03%.
Prior to today's trading, shares of the distributor of water and fire protection products had gained 1.28% outpaced the Industrial Products sector's loss of 3.12% and lagged the S&P 500's gain of 5.25%.
The investment community will be paying close attention to the earnings performance of Core & Main in its upcoming release. The company is slated to reveal its earnings on June 10, 2026. On that day, Core & Main is projected to report earnings of $0.7 per share, which would represent year-over-year growth of 34.62%. At the same time, our most recent consensus estimate is projecting a revenue of $1.9 billion, reflecting a 0.37% fall from the equivalent quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $3.12 per share and a revenue of $7.89 billion, signifying shifts of +5.05% and +3.18%, respectively, from the last year.
Investors might also notice recent changes to analyst estimates for Core & Main. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.49% increase. At present, Core & Main boasts a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Core & Main has a Forward P/E ratio of 15.73 right now. This signifies a discount in comparison to the average Forward P/E of 16.56 for its industry.
Also, we should mention that CNM has a PEG ratio of 1.73. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Manufacturing - Tools & Related Products stocks are, on average, holding a PEG ratio of 1.36 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 169, this industry ranks in the bottom 31% of all industries, numbering over 250.
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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
Core & Main, Inc. (NYSE:CNM) will release earnings for its first quarter before the opening bell on Wednesday, June 10.
Analysts expect the Saint Louis, Missouri-based company to report quarterly earnings of 57 cents per share. That's up from 53 cents per share in the year-ago period. The consensus estimate for Core & Main's quarterly revenue is $1.89 billion. It reported $1.91 billion last year, according to Benzinga Pro.
On March 27, the board appointed M. Susan Hardwick as a director and as a member of the talent and compensation committee.
Shares of Core & Main rose 0.9% to close at $52.65 on Tuesday.
Benzinga readers can access the latest analyst ratings on the Analyst Stock Ratings page. Readers can sort by stock ticker, company name, analyst firm, rating change or other variables.
Let's have a look at how Benzinga's most-accurate analysts have rated the company in the recent period.
Considering buying CNM stock? Here’s what analysts think:
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Core & Main (CNM - Free Report) came out with quarterly earnings of $0.72 per share, beating the Zacks Consensus Estimate of $0.7 per share. This compares to earnings of $0.52 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +3.60%. A quarter ago, it was expected that this distributor of water and fire protection products would post earnings of $0.48 per share when it actually produced earnings of $0.52, delivering a surprise of +8.33%.
Over the last four quarters, the company has surpassed consensus EPS estimates two times.
Core & Main, which belongs to the Zacks Manufacturing - Tools & Related Products industry, posted revenues of $1.91 billion for the quarter ended April 2026, surpassing the Zacks Consensus Estimate by 0.32%. This compares to year-ago revenues of $1.91 billion. The company has topped consensus revenue estimates just once over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Core & Main shares have added about 1.3% since the beginning of the year versus the S&P 500's gain of 7.9%.
What's Next for Core & Main?While Core & Main has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Core & Main was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.98 on $2.18 billion in revenues for the coming quarter and $3.12 on $7.89 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Manufacturing - Tools & Related Products is currently in the bottom 32% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
One other stock from the same industry, Enerpac (EPAC - Free Report) , is yet to report results for the quarter ended May 2026.
This industrial products company is expected to post quarterly earnings of $0.49 per share in its upcoming report, which represents a year-over-year change of -3.9%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Enerpac's revenues are expected to be $164.5 million, up 3.7% from the year-ago quarter.
Med-tech stock Conmed dips ahead of big Q4 report...opportunity?Core & Main NYSE: CNM reaffirmed its fiscal 2026 outlook after reporting first-quarter results that management said reflected resilient municipal demand, disciplined pricing and margin initiatives, despite continued pressure in residential lot development.
The water, wastewater, storm drainage and fire protection products distributor reported first-quarter net sales of $1.9 billion, roughly in line with the prior year. Adjusted EBITDA was $226 million, up 1% year over year, while adjusted diluted earnings per share rose about 6% to $0.72 from $0.68 a year earlier.
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Chief Executive Officer Mark Witkowski said the company delivered “a solid start to fiscal 2026,” citing “disciplined execution and the underlying resilience” of the business. He said the results support the full-year outlook Core & Main issued in March.
Municipal Demand Remains Core Growth Driver Witkowski said municipal demand remained strong during the quarter and continues to be a “core source of growth” for Core & Main. He pointed to aging water infrastructure, repair and replacement activity, and the largely non-discretionary nature of municipal spending as key drivers.
Management emphasized that municipal water infrastructure funding is largely local. Witkowski said approximately 95% of water infrastructure funding is supported by state and local sources, reinforcing what he described as the durable nature of the market.
Chief Financial Officer Robyn Bradbury said municipal volumes were supported by repair and replacement activity, non-discretionary projects and continued share gains in smart utility and treatment plant initiatives. In response to an analyst question about the Infrastructure Investment and Jobs Act, Bradbury said remaining funding is expected to flow into state revolving funds this year, but added that the company does not see a funding “cliff,” because much of the money remains available for municipalities and because state and local funding remains the dominant source of water infrastructure investment.
Residential Still Soft, Non-Residential Mixed Core & Main said residential markets remained challenged, with year-over-year declines against a strong prior-year comparison. Witkowski said residential lot development began fiscal 2025 with optimism before pulling back later in the year. Since then, he said conditions have largely stabilized, with no further deterioration from the end of fiscal 2025 but no meaningful improvement either.
Bradbury said residential softness was most pronounced in Sun Belt markets and reflected slower lot development activity compared with the prior year. She said sequential residential demand was stable relative to the fourth quarter and in line with expectations.
Non-residential demand was described as mixed but stable overall. Management cited healthy momentum in data centers and manufacturing facilities, which helped offset softness in traditional commercial construction, including retail and office-related activity. Witkowski said data centers represent a compelling long-term opportunity because they require water, wastewater, storm drainage and fire protection infrastructure, including significant water infrastructure for cooling systems.
Fire protection was a standout category in the quarter. In the question-and-answer session, Witkowski said the business benefited from data center activity, steady-to-positive multifamily demand and higher steel pricing after a period when steel had been a drag. He also said Core & Main’s performance in fire protection has improved over the past 12 to 18 months and that the company believes it is gaining share.
Smart Utility and Treatment Plant Initiatives Continue to Expand President Brad Cowles highlighted smart utility and treatment plant solutions as important municipal growth drivers. He said municipalities and private utilities are increasingly focused on modernizing metering infrastructure to improve billing accuracy, reduce non-revenue water, enhance visibility and operate more efficiently.
Cowles said Core & Main differentiates itself by offering a turnkey smart utility model that includes hardware, software, analytics, installation, project management and ongoing service. He said the company continues to win large, multi-year projects and referenced a previously announced award that Core & Main believes is the largest smart utility contract in U.S. history.
Witkowski said smart utility solutions delivered high single-digit growth during the quarter. In response to analyst questions about meter-market concerns at original equipment manufacturers, Cowles said Core & Main is benefiting from large integrated projects, while some meter manufacturers may be more exposed to smaller ongoing maintenance and residential-related demand, where activity is softer.
Treatment plant solutions delivered double-digit growth in the quarter, according to management. Cowles said treatment plant modernization is being driven by aging facilities, regulatory requirements and greater demands on water and wastewater systems. He said treatment plant projects range from smaller rehabilitation work to major facility retrofits and new construction, though complete new builds are less common.
Witkowski said treatment plant sales are in the mid-single-digit range as a share of Core & Main’s sales, and management sees opportunities to expand the addressable products and services it can provide. Cowles said acquisitions could help add technical expertise and broaden the company’s offering in areas such as actuated valves, engineered pipe stands and metal fabrications used inside plants.
Margins Improve as Company Reaffirms Guidance Gross margin expanded 50 basis points year over year to 27.2%. Bradbury said the improvement was driven by private label growth, sourcing optimization and disciplined pricing and purchasing execution. Adjusted EBITDA margin rose 10 basis points to 11.8%.
Bradbury said overall pricing was stable during the quarter, with increases across most product categories offset by a year-over-year headwind from PVC. She said PVC pricing remains below prior-year levels but has stabilized sequentially, and supplier price increases could become a modest tailwind later in the year. In the Q&A session, she said the company has begun passing through some PVC increases in bidding and quoting activity, with most of the impact expected in the third quarter.
SG&A expenses increased 2% to $299 million, driven by strategic growth investments, acquisition-related costs and inflation. Bradbury said that excluding the impact of investments and M&A, SG&A declined modestly year over year, reflecting cost management.
Core & Main reaffirmed its fiscal 2026 guidance, including:
Net sales of $7.8 billion to $7.9 billion; Adjusted EBITDA of $950 million to $980 million; Operating cash flow conversion of 60% to 70% of adjusted EBITDA. Bradbury said the company continues to expect overall end-market volumes to be roughly flat for the year, with municipal strength offset by a cautious outlook in private construction. She said the company expects slight growth in the second quarter and low- to mid-single-digit growth in the third and fourth quarters as comparisons ease and backlog activity releases.
Cash Flow, Buybacks and Expansion Remain Priorities Core & Main ended the quarter with net debt of $2 billion and net debt leverage of 2.2 times, within its target range. Liquidity was nearly $1.4 billion, including $150 million in cash. Operating cash flow was $82 million, up $5 million from the prior-year quarter.
The company repurchased $88 million of stock during the first quarter, reducing share count by about 1.8 million shares. Including post-quarter repurchases, Core & Main had bought back 2.5 million shares in fiscal 2026, representing about 80% of its total buybacks for all of fiscal 2025.
Witkowski said the company opened five greenfield locations during the quarter and remains on track to open a record eight to 10 locations in fiscal 2026. He also said the acquisition pipeline has become more active after a period of lower deal activity, with opportunities ranging from small tuck-ins to larger transactions and deals aligned with municipal and treatment plant capabilities.
“While we do not expect near-term tailwinds in residential, we see plenty of opportunities to capture growth within our municipal and non-residential end markets,” Witkowski said in closing remarks. He added that the long-term fundamentals of aging infrastructure, population growth and reliable water systems remain intact.
About Core & Main NYSE: CNMCore & Main, Inc NYSE: CNM is a leading distributor of water, sewer, storm drainage and fire protection products across North America. The company's product portfolio includes valves, hydrants, pipe and fittings, meters, couplings and other essential components that support municipal, industrial and environmental infrastructure projects. By combining a comprehensive inventory with logistics and technical support, Core & Main helps customers address complex water system and distribution challenges.
With more than 300 branch locations and over 3,500 employees, Core & Main serves a diverse customer base that includes municipalities, contractors, engineers and utility providers.
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U.S. stocks traded lower midway through trading, with the Nasdaq Composite falling over 1% on Wednesday.
The Dow traded down 1.13% to 50,299.68 while the NASDAQ fell 1.16% to 25,381.36. The S&P 500 also fell, dropping, 0.86% to 7,322.92.
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Energy shares jumped by 2.4% on Wednesday.
In trading on Wednesday, industrials stocks fell by 2.4%.
Top Headline
Core & Main Inc (NYSE:CNM) reported upbeat earnings for the first quarter on Wednesday.
The company posted quarterly earnings of 72 cents per share which beat the analyst consensus estimate of 67 cents per share. The company reported quarterly sales of $1.910 billion which beat the analyst consensus estimate of $1.905 billion.
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European shares were mostly higher today. The eurozone's STOXX 600 gained 0.2%, while Spain's IBEX 35 Index rose 0.3%. London's FTSE 100 rose 0.1%, Germany's DAX declined 0.4%, while France's CAC 40 rose 0.1%.
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Asian markets closed mostly lower on Wednesday, with Japan's Nikkei 225 falling 1.89%, Hong Kong's Hang Seng Index declining 0.64%, China's Shanghai Composite dipping 0.42% and India's BSE Sensex rising 0.09%.
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Core & Main, Inc. remains a Hold as shares fell after Q1 FY26 results, despite revenue beating expectations. Smart utility products and fire protection segments showed robust growth, but pipes, valves, and fittings, as well as storm drainage, declined. Management projects FY26 revenue of $7.8–$7.9B and EBITDA of $950–$980M, supporting increased share buybacks and expansion.
