We came across a bullish thesis on Core & Main, Inc. on stocks subreddit by jakapop. In this article, we will summarize the bulls’ thesis on CNM. Core & Main, Inc.'s share was trading at $54.19 as of January 29th. CNM’s trailing and forward P/E were 24.21 and 21.83 respectively according to Yahoo Finance. Pixabay/Public Domain Core & Main is a leading distributor of water, wastewater, storm drainage, and fire protection infrastructure products—critical components like pipes, valves, meters, and fittings ...

Artificial intelligence is the greatest investment opportunity of our lifetime. The time to invest in groundbreaking AI is now, and this stock is a steal! AI is eating the world—and the machines behind it are ravenous. Each ChatGPT query, each model update, each robotic breakthrough consumes massive amounts of energy. In fact, AI is already pushing global power grids to the brink. Wall Street is pouring hundreds of billions into artificial intelligence—training smarter chatbots, automating industries, and b ...

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]