Company Overview - Core & Main, Inc. (CNM) shares increased by 10.4% to $59.09 in the last trading session, with a higher-than-average trading volume [1] - The company has made the Fortune 500 list for the first time at No. 497, indicating rapid growth in providing essential water infrastructure products [2] Financial Performance - Core & Main is expected to report quarterly earnings of $0.52 per share, reflecting a year-over-year increase of 6.1% [3] - Revenue projections for the upcoming quarter are $1.83 billion, which is a 5.3% increase compared to the same quarter last year [3] Market Sentiment - The recent stock price increase is attributed to optimism regarding rising customer demand for storm drainage products and pipes, valves, and fittings [2] - The consensus EPS estimate for Core & Main has remained unchanged over the last 30 days, suggesting that the stock's price movement may not sustain without earnings estimate revisions [4] Industry Context - Core & Main operates within the Zacks Manufacturing - Tools & Related Products industry, where Sandvik AB (SDVKY) also competes [4] - Sandvik's consensus EPS estimate has remained unchanged at $0.36, representing a year-over-year change of 24.1% [5]

Core Insights - Core & Main's stock closed at $51.64, showing a -0.39% change from the previous day, underperforming compared to the S&P 500's loss of 0.07% [1] - The stock has increased by 7.6% over the past month, which is lower than the Industrial Products sector's gain of 16.88% and the S&P 500's gain of 13.74% [1] Financial Projections - The upcoming earnings per share (EPS) for Core & Main is projected at $0.52, indicating a 6.12% increase year-over-year [2] - Revenue is expected to reach $1.83 billion, reflecting a 5.25% rise from the same quarter last year [2] - For the full year, earnings are estimated at $2.43 per share and revenue at $7.71 billion, showing increases of +14.08% and +3.66% respectively from the previous year [3] Analyst Sentiment - Investors should monitor shifts in analyst projections for Core & Main, as positive estimate revisions can indicate optimism about the company's outlook [4] - The Zacks Rank system, which reflects these estimate changes, currently rates Core & Main at 3 (Hold) [6] Valuation Metrics - Core & Main has a Forward P/E ratio of 21.33, which is higher than the industry average of 18.31 [7] - The company has a PEG ratio of 1.96, compared to the Manufacturing - Tools & Related Products industry's average PEG ratio of 1.49 [7] Industry Context - The Manufacturing - Tools & Related Products industry is part of the Industrial Products sector and currently holds a Zacks Industry Rank of 224, placing it in the bottom 10% of all industries [8] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [8]

Core & Main (CNM) closed the latest trading day at $50.43, indicating a +1.49% change from the previous session's end. The stock fell short of the S&P 500, which registered a gain of 1.67% for the day. At the same time, the Dow added 1.07%, and the tech-heavy Nasdaq gained 2.5%.The distributor of water and fire protection products's stock has climbed by 0.34% in the past month, exceeding the Industrial Products sector's loss of 8.85% and the S&P 500's loss of 6.57%.The investment community will be closely m ...

One stock that might be an intriguing choice for investors right now is Core & Main, Inc. (CNM) . This is because this security in the Manufacturing - Tools & Related Products space is seeing solid earnings estimate revision activity, and is in great company from a Zacks Industry Rank perspective.This is important because, often times, a rising tide will lift all boats in an industry, as there can be broad trends taking place in a segment that are boosting securities across the board. This is arguably takin ...

Core Viewpoint - The Zacks Manufacturing-Tools & Related Products industry is facing challenges due to softness in the manufacturing sector, a slowdown in new orders, and ongoing supply-chain issues, compounded by a shortage of skilled labor in the U.S. [1][5][6] Industry Overview - The industry includes companies that develop and distribute various tools such as hand and mechanics tools, hydraulic tools, and engineered fastening systems, among others [3] - Advanced tools are utilized across multiple sectors including industrial, commercial, oil & gas, mining, and automotive [4] Major Trends - **Weakness in the Manufacturing Sector**: The Manufacturing Purchasing Manager's Index fell to 49% in March, indicating contraction, with the New Orders Index at 45.2% [5] - **Rising Costs**: Input cost inflation and supply-chain issues are negatively impacting profitability, with the Supplier Deliveries Index showing slower deliveries for four consecutive months [6] - **Investments in Product Development**: Companies are focusing on innovation and product upgrades, although this often leads to highly leveraged balance sheets [7] Industry Performance - The Zacks Manufacturing-Tools & Related Products industry ranks 162, placing it in the bottom 34% of 247 Zacks industries, indicating weak near-term prospects [8][9] - The industry's earnings estimates for 2025 have decreased by 11.1% over the past year, reflecting analysts' diminishing confidence in earnings growth [10] - The industry has underperformed both the sector and the S&P 500, declining 20.5% over the past year compared to the S&P 500's growth of 6.9% [12] Current Valuation - The industry is trading at a forward P/E ratio of 15.81X, below the S&P 500's 20.05X and the sector's 16.83X [13] Notable Companies - **Stanley Black & Decker, Inc.**: Expected growth driven by strong performance in the Tools & Outdoor segment and cost-reduction efforts [14][15] - **Lincoln Electric Holdings, Inc.**: Benefiting from cost management and product launches in automation solutions [15][16] - **Core & Main, Inc.**: Increased demand for infrastructure products and recent acquisitions are positive for growth [17][18] - **Enerpac Tool Group Corp.**: Solid momentum in the Industrial Tools & Services segment supports its growth [20][21]

Softness in the manufacturing sector, slowdown in new orders and lingering effects of supply-chain issues have impacted the outlook of the Zacks Manufacturing-Tools & Related Products industry. The shortage of skilled labor in the United States is another concern for the industry.Investments in product development and cost-control measures are expected to foster the industry participants’ growth. Lincoln Electric Holdings, Inc. (LECO) , Core & Main, Inc. (CNM) , Stanley Black & Decker, Inc. (SWK) and Enerpa ...

Group 1 - The analyst maintains a positive outlook on Core & Main (CNM) for FY25, reiterating a buy rating based on demand expectations [1] - The analysis incorporates various investment strategies, including fundamental, technical, and momentum investing, to enhance the investment process [1] Group 2 - The article serves as a platform for tracking investment ideas and connecting with like-minded investors [1]

Financial Data and Key Metrics Changes - The company achieved record net sales of over $7.4 billion for fiscal 2024, reflecting an 11% increase year-over-year [26][47] - Adjusted EBITDA for fiscal 2024 increased by 2% to $930 million, with an adjusted EBITDA margin of 12.5%, down 110 basis points from the previous year [51][62] - Gross margin for fiscal 2024 was 26.6%, a decrease from 27.1% in fiscal 2023, attributed to higher average inventory costs [48][62] - Selling, general and administrative (SG&A) expenses rose approximately 16% to nearly $1.1 billion, primarily due to acquisitions and inflation [49][62] Business Line Data and Key Metrics Changes - The company reported strong double-digit average daily sales growth in metering and storm drainage products, and high single-digit growth in treatment plant projects [27] - Acquisitions contributed about 9% to sales growth, while organic average daily volumes were up low single digits [42][47] - Private label products represented approximately 4% of sales, with a target to grow to 10% or more over time [29][62] Market Data and Key Metrics Changes - The company estimates it holds a 19% share of a $39 billion addressable market, indicating significant growth potential [15] - Municipal spending on water infrastructure is expected to remain resilient, with low single-digit growth projected for 2025 [58][62] - The company anticipates flat nonresidential construction starts in 2025, with a stable outlook for municipal projects [56][62] Company Strategy and Development Direction - The company plans to continue driving profitable growth through both organic means and acquisitions, while maintaining strong cash flow [40][62] - The focus remains on expanding presence in underpenetrated geographies and driving the adoption of new products [60][62] - The company aims to enhance gross margins through private label initiatives, sourcing optimization, and pricing strategies [61][62] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating uncertainties related to interest rates, federal funding, and tariffs, while remaining optimistic about municipal water infrastructure projects [54][56] - The company expects to achieve net sales growth of 2% to 5% in fiscal 2025, with adjusted EBITDA projected to range from $950 million to $1 billion [62] - Management highlighted the importance of maintaining a strong culture and leadership team during the transition of executive roles [11][104] Other Important Information - The company completed 10 acquisitions in fiscal 2024, adding over $600 million in annual sales [27][32] - The company returned $176 million to shareholders through share repurchases, with a remaining authorization of $324 million [53][62] - Management noted that tariffs are not expected to significantly impact the business, as most products are produced domestically [33][116] Q&A Session Summary Question: What percentage of COGS is PVC today and what are the price expectations? - PVC pipe accounts for less than 15% of COGS, with an overall neutral pricing environment expected moving forward [68][69] Question: Can you provide insight into first quarter trends? - The start of 2025 is in line with expectations, with strong bidding activity and a good backlog [72][73] Question: What is the outlook for end markets? - Residential and non-residential markets are expected to remain steady, with municipal spending projected to be resilient [76][79] Question: What are the key levers for gross margin expansion? - Private label initiatives are the primary driver for gross margin expansion, followed by sourcing optimization [81][82] Question: How do you view the competitive dynamics in your markets? - The competitive environment remains stable, with continued market share gains expected [119]

Company Performance - Core & Main Inc. reported fourth-quarter earnings of 33 cents per share, missing the consensus estimate of 36 cents per share [2] - Net sales for Core & Main increased by 17.9% year-over-year to $1.69 billion, nearly aligning with the consensus estimate of $1.67 billion [2] - The CFO of Core & Main will succeed the current CEO, and the current senior vice president of finance and investor relations will take over as CFO [2] Stock Movements - Tenon Medical, Inc. shares surged 307% to $3.98 following FDA 510(k) clearance for its Catamaran St Joint Fusion System [9] - DatChat, Inc. shares increased by 137% to $5.11 after the launch of its Myseum social media platform on Apple iOS and Android [9] - Mullen Automotive, Inc. shares rose by 88% to $0.4804 [9] - Mural Oncology plc shares dropped 60% to $1.5470 after announcing the discontinuation of its final analysis of Nemvaleukin in combination with KEYTRUDA [9] - CNS Pharmaceuticals, Inc. shares fell 62% to $1.2907 following the primary analysis of Berubicin in glioblastoma multiforme treatment [9] - IMAC Holdings, Inc. shares decreased by 58% to $0.1794 [9]

Core Earnings Performance - Core & Main reported quarterly earnings of $0.33 per share, missing the Zacks Consensus Estimate of $0.36 per share, and showing a slight decrease from $0.34 per share a year ago, resulting in an earnings surprise of -8.33% [1] - The company posted revenues of $1.7 billion for the quarter ended January 2025, surpassing the Zacks Consensus Estimate by 1.07%, compared to year-ago revenues of $1.44 billion [2] Stock Performance and Outlook - Core & Main shares have declined approximately 2.5% since the beginning of the year, while the S&P 500 has seen a decline of -1.9% [3] - The company's earnings outlook is mixed, with current consensus EPS estimates at $0.51 for the coming quarter and $2.40 for the current fiscal year, with revenues expected to be $1.82 billion and $7.67 billion respectively [7] Industry Context - The Manufacturing - Tools & Related Products industry, to which Core & Main belongs, is currently ranked in the top 32% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - The correlation between near-term stock movements and trends in earnings estimate revisions is noted, suggesting that investors should monitor these revisions closely [5]