Company Performance - Core & Main (CNM) closed at $48.27, reflecting a -0.49% change from the previous day, underperforming the S&P 500 which gained 0.08% [1] - Over the past month, CNM shares declined by 7.46%, worse than the Industrial Products sector's loss of 5.98% and the S&P 500's loss of 7.33% [2] Upcoming Earnings Report - Core & Main is set to release its earnings on March 25, 2025, with an expected EPS of $0.36, indicating a 5.88% growth year-over-year [3] - Revenue is projected to be $1.68 billion, representing a 16.67% increase compared to the same quarter last year [3] Analyst Projections - Recent shifts in analyst projections for Core & Main are important, as positive revisions indicate optimism regarding the company's business and profitability [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 20.18, which is higher than the industry's Forward P/E of 18.63 [7] - The company's PEG ratio stands at 2.41, compared to the Manufacturing - Tools & Related Products industry's average PEG ratio of 1.3 [7] Industry Context - The Manufacturing - Tools & Related Products industry is part of the Industrial Products sector, holding a Zacks Industry Rank of 82, placing it in the top 33% of over 250 industries [8] - Strong individual industry groups, as measured by the Zacks Industry Rank, tend to outperform weaker groups by a factor of 2 to 1 [8]

Company Overview - Core & Main (CNM) ended the recent trading session at $47.85, showing a +0.36% change from the previous day's closing price, which is less than the S&P 500's daily gain of 0.64% [1] - Over the past month, shares of Core & Main have depreciated by 12.21%, underperforming the Industrial Products sector's loss of 6.06% and the S&P 500's loss of 7.69% [2] Upcoming Earnings - The upcoming earnings release for Core & Main is scheduled for March 25, 2025, with an expected EPS of $0.36, indicating a 5.88% growth compared to the same quarter last year [3] - The consensus estimate forecasts revenue to be $1.68 billion, reflecting a 16.67% growth compared to the corresponding quarter of the prior year [3] Analyst Forecasts - Recent revisions to analyst forecasts for Core & Main are important as they reflect short-term business trends, with positive changes indicating a favorable outlook on the company's health and profitability [4] - Empirical research shows that these estimate revisions correlate with impending stock price performance, allowing investors to capitalize on this through the Zacks Rank system [5] Zacks Rank and Valuation - Core & Main currently holds a Zacks Rank of 3 (Hold), with the Zacks Consensus EPS estimate remaining steady over the past month [6] - The company's Forward P/E ratio is 19.84, which is a premium compared to the industry average Forward P/E of 18.4 [7] - Core & Main has a PEG ratio of 2.37, compared to the Manufacturing - Tools & Related Products industry's average PEG ratio of 1.28 [8] Industry Context - The Manufacturing - Tools & Related Products industry is part of the Industrial Products sector and holds a Zacks Industry Rank of 81, placing it in the top 33% of over 250 industries [9]

Group 1 - Core & Main (CNM) closed at $47.53, reflecting a +0.23% change from the previous day, underperforming compared to the S&P 500's gain of 1.12% [1] - Over the past month, CNM shares experienced a loss of 13.21%, which is worse than the Industrial Products sector's loss of 7.88% and the S&P 500's loss of 4.13% [1] Group 2 - The upcoming earnings release for Core & Main is anticipated, with projected EPS of $0.36, indicating a 5.88% increase year-over-year, and expected quarterly revenue of $1.68 billion, up 16.67% from the previous year [2] - Recent analyst estimate revisions for Core & Main suggest positive short-term business trends, reflecting analysts' confidence in the company's performance [3] Group 3 - The Zacks Rank system, which evaluates estimate changes, currently ranks Core & Main at 3 (Hold), with the Zacks Consensus EPS estimate remaining unchanged over the past month [5] - Core & Main has a Forward P/E ratio of 19.73, which is higher than the industry average of 19.23 [6] Group 4 - The company has a PEG ratio of 2.36, compared to the Manufacturing - Tools & Related Products industry's average PEG ratio of 1.29 [7] - The Manufacturing - Tools & Related Products industry is ranked 88 in the Zacks Industry Rank, placing it in the top 36% of over 250 industries, indicating strong performance potential [8]

Group 1 - Core & Main, Inc. (NYSE: CNM) has strong growth prospects driven by aging infrastructure in municipal markets and solid demand in heavy non-residential sectors due to reshoring trends [1] - The residential and light non-residential markets are also expected to experience growth [1] - The focus is on GARP (Growth at Reasonable Price) opportunities within the industrial, consumer, and technology sectors [1]

Industry Overview - The Zacks Manufacturing-Tools & Related Products industry is expected to grow due to strong demand for machinery tools in industrial and automotive sectors, driven by urbanization and investments in product development [1][4] - The industry includes companies that develop and distribute various tools and technologies used across multiple sectors, including industrial, commercial, oil & gas, and automotive [3] Growth Drivers - Strength in end markets, particularly in industrial, automotive, and packaging, is anticipated to boost the industry's growth, with increased reliance on electrical devices further driving demand for manufacturing tools [4] - Continuous investments in product development and innovation are crucial for maintaining competitiveness, although they may lead to highly leveraged balance sheets [5] - An acquisition-based growth strategy is being employed by industry participants to expand customer reach and product offerings, allowing them to enter new markets and mitigate risks associated with reliance on a single market [6] Market Performance - The Zacks Manufacturing-Tools & Related Products industry currently holds a Zacks Industry Rank of 84, placing it in the top 34% of over 250 Zacks industries, indicating solid prospects [7][8] - Over the past year, the industry has underperformed compared to the sector and the S&P 500, with a growth of 3.1% against the sector's 16.6% and the S&P 500's 26.4% [9] Valuation Metrics - The industry is trading at a forward 12-month Price-to-Earnings (P/E) ratio of 18.95X, which is lower than the S&P 500's 22.33X and the sector's 19.65X [11] Key Companies - Core & Main, Inc. (CNM) is benefiting from increased demand for its products and recent acquisitions, with a revised earnings estimate of $2.16 per share for fiscal 2024 [13][14] - Stanley Black & Decker, Inc. (SWK) is expected to gain from a global cost-reduction program and has seen a 0.5% upward revision in its earnings estimate for 2024 [16][17] - Lincoln Electric Holdings (LECO) is focusing on strategic acquisitions and new product launches to drive growth, with a history of exceeding earnings estimates [23][19] - Kennametal Inc. (KMT) is experiencing momentum in its Infrastructure segment and has made significant investments in product development [21][22]

Core Viewpoint - Core & Main (CNM) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive trend in earnings estimates which is a significant factor influencing stock prices [1][3] Earnings Estimates and Stock Price Movement - The Zacks rating system reflects changes in earnings estimates, which are strongly correlated with near-term stock price movements, particularly due to institutional investors adjusting their valuations based on these estimates [4][6] - For Core & Main, the rising earnings estimates and the rating upgrade suggest an improvement in the company's underlying business, likely leading to increased stock prices [5][10] Earnings Estimate Revisions - For the fiscal year ending January 2025, Core & Main is expected to earn $2.16 per share, reflecting a 0.5% change from the previous year, with a 3.2% increase in the Zacks Consensus Estimate over the past three months [8][10] Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks which have averaged a +25% annual return since 1988 [7][9] - The upgrade of Core & Main to a Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [10]

Core Insights - Core & Main (CNM) has reached a significant support level and crossed above the 200-day moving average, indicating a long-term bullish trend [1] - CNM shares have increased by 11.6% over the past four weeks, reflecting positive market momentum [2] - The company currently holds a Zacks Rank 3 (Hold), suggesting potential for continued growth [2] Earnings Estimates - There have been three upward revisions in earnings estimates for CNM for the current fiscal year, with no downward revisions, indicating positive sentiment among analysts [3] - The consensus earnings estimate for CNM has also increased, further supporting the bullish outlook [3] Technical Indicators - The 200-day simple moving average is a key technical indicator that helps establish long-term market trends and serves as a support or resistance level [2] - The recent price movements and technical indicators suggest that CNM may be positioned for further gains in the near future [3]

Group 1 - The individual investor focuses on managing personal capital accumulated over the years, utilizing a diverse range of investment strategies including fundamental, technical, and momentum investing [1] - The investor aims to leverage the strengths of various investment approaches to refine their investment process [1] - The purpose of writing on Seeking Alpha is to track the performance of investment ideas and connect with like-minded investors [1]

Group 1 - Core & Main (NYSE: CNM) experienced a significant positive impact on its shareholders on December 3rd, indicating strong market performance [1] - The company is involved in the distribution of a vast array of products, with hundreds of thousands of SKUs available [1] Group 2 - Crude Value Insights provides an investment service focused on the oil and natural gas sector, emphasizing cash flow and the potential for value and growth [1] - Subscribers to Crude Value Insights benefit from a model account featuring over 50 stocks, detailed cash flow analyses of exploration and production firms, and live discussions about the sector [2]

Core Insights - Core & Main exceeded third-quarter earnings and revenue forecasts, benefiting from acquisitions [1] - The company set records for quarterly revenue and adjusted EBITDA [1] - CEO Steve LeClair highlighted the impact of five acquisitions on expanding geographic presence and product lines [1] Financial Performance - Core & Main reported third-quarter earnings per share (EPS) of $0.69, with revenue increasing 11.5% year-over-year to a record $2.04 billion [1] - Adjusted EBITDA reached an all-time high of $277 million, surpassing consensus estimates [1] - Sales gains were primarily driven by acquisitions and higher end-market volumes [1] Outlook and Guidance - Core & Main raised its fiscal 2024 guidance, projecting net sales between $7.35 billion and $7.45 billion, and adjusted EBITDA between $915 million and $935 million [2] - This is an increase from previous estimates of $7.30 billion to $7.40 billion in sales and $900 million to $930 million in adjusted EBITDA [2] - The company's shares have risen approximately 38% this year [2]