Market Overview - The U.S. stock market experienced a rally in 2023 and 2024, continuing into 2025, with the Dow, S&P 500, and Nasdaq Composite increasing by 13%, 16.4%, and 20.4% respectively [1] - December 2024 showed mixed results, with the Dow and S&P 500 rising by 0.7% and 0.3%, while the Nasdaq Composite fell by 0.5% due to profit booking in AI-centric technology stocks [2] - Strong fundamentals, solid fourth-quarter earnings projections, and accommodative Fed policies are expected to support market momentum in January 2025 [3] Investment Opportunities - Stocks with favorable Zacks Rank and momentum are recommended for investment in January, including Robinhood Markets Inc. (HOOD), MongoDB Inc. (MDB), Samsara Inc. (IOT), Ciena Corp. (CIEN), and Core & Main Inc. (CNM) [4] Robinhood Markets Inc. - Robinhood operates a financial services platform allowing investments in various assets, including cryptocurrencies [5] - The company is focusing on growth through product innovation, including AI tools and global expansion, with new features like Cortex and Legend enhancing user engagement [6][8] - Robinhood's expected revenue and earnings growth rates are 22% and 20.6% respectively for the current year, with a 5.7% improvement in earnings estimates over the last 30 days [10] MongoDB Inc. - MongoDB has expanded its Atlas platform into analytics, targeting modern workloads and generative AI applications [11] - The company has seen strong adoption across enterprises, with a focus on larger deals and efficient customer acquisition [12] - Expected revenue and earnings growth rates for MongoDB are 17.5% and 17% respectively for the next year, with a significant 29.6% improvement in earnings estimates over the last 60 days [14] Samsara Inc. - Samsara connects physical operations data to its cloud platform, developing sensor systems for analytics [15] - The company's Connected Operations Cloud includes AI capabilities and is expected to see revenue and earnings growth rates of 19.8% and 12.9% respectively for the next year [16] Ciena Corp. - Ciena reported a 20% year-over-year revenue increase and 69.5% EPS growth, driven by AI demand from cloud and service providers [17] - The company expects revenue for fiscal 2026 to be between $5.7 billion and $6.1 billion, reflecting nearly 24% growth at the midpoint [19] - Ciena's expected revenue and earnings growth rates are 24.3% and 97.7% respectively for the current year, with a 19.7% improvement in earnings estimates over the last 30 days [21] Core & Main Inc. - Core & Main distributes water and fire protection products to various markets in the U.S. [22] - The company has an expected revenue and earnings growth rate of 3% and 7.7% respectively for the next year, with a 24.4% improvement in earnings estimates over the last 30 days [24]

Core Point - Core & Main has entered into a definitive agreement to acquire Pioneer Supply, a distributor of water, wastewater, and storm drainage products [1] Company Summary - Core & Main is expanding its operations through the acquisition of Pioneer Supply, which specializes in water-related products [1] - The acquisition is expected to enhance Core & Main's distribution capabilities in the water and wastewater sectors [1] Industry Summary - The acquisition reflects ongoing consolidation trends within the water and wastewater distribution industry [1] - Companies in this sector are increasingly focusing on expanding their product offerings and distribution networks to meet growing demand [1]

Core Viewpoint - Core & Main (CNM) is positioned as a strong investment opportunity due to a significant revision in the company's earnings estimates, indicating a positive earnings outlook that may continue to drive stock gains [1][9] Earnings Estimates - Analysts are increasingly optimistic about the earnings prospects for Core & Main, leading to higher earnings estimates that are expected to positively impact the stock price [2] - For the current quarter, the earnings estimate is projected at $0.48 per share, reflecting a 45.5% increase from the previous year's reported figure, with a 40.82% rise in consensus estimates over the last 30 days [5] - The full-year earnings estimate is expected to be $2.94 per share, representing a 38.0% increase from the prior year, with a 27.49% increase in consensus estimates during the same timeframe [6][7] Zacks Rank - Core & Main has achieved a Zacks Rank 1 (Strong Buy) due to favorable estimate revisions, which is a reliable indicator of potential stock performance [8] - The Zacks Rank system has a proven track record, with Zacks 1 Ranked stocks averaging a 25% annual return since 2008, suggesting that Core & Main could outperform the market [3][8] Stock Performance - The stock has gained 6.3% over the past four weeks, driven by solid estimate revisions, indicating strong investor interest and potential for further growth [9]

Core Investment Thesis - Core & Main (CNM) is identified as a promising growth stock with a favorable Growth Score and a top Zacks Rank, indicating strong investment potential [2][10] Earnings Growth - The historical EPS growth rate for Core & Main is 0.4%, but projected EPS growth for this year is expected to be 6.4%, surpassing the industry average of 5.2% [5] Cash Flow Growth - Core & Main's year-over-year cash flow growth stands at 15.2%, significantly higher than the industry average of -1.6% [6] - The company's annualized cash flow growth rate over the past 3-5 years is 28.3%, compared to the industry average of 6.2% [7] Earnings Estimate Revisions - There has been a positive trend in earnings estimate revisions for Core & Main, with the Zacks Consensus Estimate for the current year increasing by 1% over the past month [8] Overall Positioning - Core & Main holds a Zacks Rank of 2 (Buy) and a Growth Score of B, positioning it well for potential outperformance in the market [10]

Core Business Overview - Core & Main is a leading distributor in the U.S. water and fire protection infrastructure market, leveraging a broad product portfolio and deep industry relationships [1] - The company's scale and specialized expertise support critical infrastructure projects and ongoing maintenance needs for diverse end markets [1] - Its strategic focus on essential utility and construction sectors provides resilience and consistent demand in varying economic cycles [1] Financial Performance - Fiscal third-quarter sales rose 1.2% year over year to $2.06 billion, driven largely by acquisitions [6] - Gross margin expanded to 27.2%, with net income climbing to $143 million and adjusted EPS rising to $0.89 [6] - Operating cash flow reached $271 million for the quarter, and the company repurchased $50 million of stock while increasing its buyback authorization by another $500 million after quarter-end [6] Market Position and Investor Activity - As of Friday, shares of Core & Main were priced at $54.00, up about 5% over the past year, underperforming the S&P 500, which is up about 15% in the same period [2] - Tribune Investment Group LP initiated a new holding in Core & Main during the third quarter, reporting ownership of 335,000 shares valued at approximately $18.03 million as of September 30 [3][4] - The timing of Tribune's investment coincided with a period of volatility, as the stock fell roughly 27% following its fiscal second-quarter earnings report [5] Strategic Insights - Core & Main's portfolio is tilted toward industrial and infrastructure-linked names, indicating a focus on aging water infrastructure and disciplined capital returns [7] - The company may not outperform every year, but its steady cash generation explains why patient capital is willing to invest when sentiment is low [7] - Shares have already increased about 7% since the latest earnings release, suggesting a long-term investment thesis rather than a short-term focus [7]

Core Investment Activity - Tribune Investment Group established a new position in Core & Main by acquiring 335,000 shares valued at approximately $18.03 million during the third quarter [1][2] - This new position accounts for 8.74% of Tribune's 13F reportable assets under management as of September 30 [3] Company Performance - Core & Main reported a revenue of $7.76 billion and a net income of $435 million for the trailing twelve months [4] - In the fiscal third quarter, sales rose 1.2% year over year to $2.06 billion, with a gross margin of 27.2% [11] - Net income for the quarter climbed to $143 million, adjusted EPS rose to $0.89, and operating cash flow reached $271 million [11] Market Position and Strategy - Core & Main is a leading distributor in the U.S. water and fire protection infrastructure market, focusing on essential utility and construction sectors [6] - The company operates a distribution-focused business model, generating revenue primarily through the sale of infrastructure products and value-added services [9] - Core & Main's strategic focus on aging water infrastructure and disciplined capital returns supports its resilience in varying economic cycles [12]

Core观点 - Investors are seeking growth stocks that can deliver above-average growth and exceptional returns, but identifying such stocks is challenging due to their inherent risks and volatility [1] 分组1: Core & Main的增长潜力 - Core & Main (CNM) is identified as a promising growth stock with a favorable Growth Score and a top Zacks Rank [2] - The company has a projected EPS growth of 6.4% for the current year, surpassing the industry average of 6.1% [4] - Core & Main's year-over-year cash flow growth stands at 15.2%, significantly higher than the industry average of -1.6% [5] - The historical annualized cash flow growth rate for Core & Main over the past 3-5 years is 28.3%, compared to the industry average of 6.2% [6] 分组2: 盈利预期和市场表现 - Positive trends in earnings estimate revisions are correlated with stock price movements, and Core & Main's current-year earnings estimates have been revised upward by 1% over the past month [7][8] - Core & Main has achieved a Growth Score of B and a Zacks Rank of 2, indicating strong potential for outperformance in the market [9]

Group 1: Stock Performances - EchoStar Corporation (NASDAQ:SATS) gained 24.70% after Morgan Stanley upgraded the stock from Equal-Weight to Overweight and raised its price target from $82 to $110 [1] - Rocket Lab Corporation (NASDAQ:RKLB) rose 22.78% due to advancing a South Korean Earth-imaging mission into its next available launch window [2] - Pan American Silver Corp. (PAAS) increased 11.18% amid higher trading of precious metal companies, driven by investor optimism of a Fed rate cut [3] - Core & Main, Inc. (NYSE:CNM) gained 11.19% after reporting better-than-expected Q3 adjusted EPS, with multiple analysts raising their price forecast [3] - Flex Ltd. (NASDAQ:FLEX) increased 4.70% after Goldman Sachs maintained a Buy rating and raised its price forecast from $67 to $74 [4] Group 2: Acquisitions and Analyst Upgrades - Confluent, Inc. (NASDAQ:CFLT) increased 0.64% following IBM's agreement to acquire the company for $31 per share, with multiple analysts raising their price forecast [1][2] - Carvana Co. (NYSE:CVNA) rose 5.35% after announcing it will join the S&P 500 on December 22, 2025, along with multiple analysts raising their price forecast [2]

Core Perspective - Core & Main (CNM) has reached an important support level and surpassed resistance at the 200-day moving average, indicating a long-term bullish trend [1][2] Technical Analysis - The 200-day simple moving average is a widely-used indicator that helps establish market trends, serving as a support or resistance level [2] - CNM has experienced a rally of 12.4% over the past four weeks and currently holds a Zacks Rank 2 (Buy), suggesting potential for further upward movement [2] Earnings Estimates - Positive earnings estimate revisions for CNM strengthen the bullish outlook, with no estimates decreasing in the past two months and one estimate increasing, leading to a rise in the consensus estimate [3] - The combination of favorable technical factors and earnings estimate revisions indicates that CNM may present additional gains in the near future [3]

Core Insights - Core & Main Inc (NYSE: CNM) is a leading distributor of water, wastewater, storm drainage, and fire protection products in the United States, serving municipalities, private water companies, and professional contractors [1] - Citigroup maintains a Neutral rating for CNM, with a price target increase from $54 to $56, reflecting confidence in the company's growth potential [3][6] Financial Performance - Core & Main reported earnings of 89 cents per share, exceeding the analyst consensus of 76 cents per share, while quarterly sales were $2.062 billion, slightly missing the expected $2.066 billion [2][6] - The company has kept its full-year 2025 sales guidance between $7.6 billion and $7.7 billion [2] Growth Areas - The company has experienced double-digit growth in fusible high-density polyethylene, treatment plant solutions, and geosynthetics products, with metering products seeing high single-digit growth due to strong demand for integrated solutions addressing aging water infrastructure [4][6] Stock Performance - CNM's stock is currently priced at $54.92, reflecting a 6.52% increase or $3.36, with a market capitalization of approximately $10.43 billion [5]