- 1 Industrials Stock with Promising Prospects and 2 Facing Challenges
May 15, 2026
Even if they go mostly unnoticed, industrial businesses are the backbone of our country. They are also bound to benefit from a friendlier regulatory environment with the Trump administration, and this excitement has led to a six-month gain of 17.7% for the sector - higher than the S&P 500’s 7.9% return.
Although these companies have produced results lately, a cautious approach is imperative. When the cycle naturally turns, the losers can be left for dead while the winners consolidate and take more of the market. With that said, here is one industrials stock boasting a durable advantage and two we’re swiping left on.
Two Industrials Stocks to Sell:
Herc (HRI)
Market Cap: $4.55 billion
Formerly a subsidiary of Hertz Corporation and with a logo that still bears some similarities to its former parent, Herc Holdings (NYSE:HRI) provides equipment rental and related services to a wide range of industries.
Why Are We Hesitant About HRI?
Day-to-day expenses have swelled relative to revenue over the last five years as its operating margin fell by 7.2 percentage points Earnings per share fell by 28% annually over the last two years while its revenue grew, partly because it diluted shareholders Waning returns on capital imply its previous profit engines are losing steam
At $136.21 per share, Herc trades at 20.5x forward P/E. Read our free research report to see why you should think twice about including HRI in your portfolio, it’s free.
General Motors (GM)
Market Cap: $67.89 billion
Founded in 1908 by William C. Durant, General Motors (NYSE:GM) offers a range of vehicles and automobiles through brands such as Chevrolet, Buick, GMC, and Cadillac.
Why Is GM Not Exciting?
Scale is a double-edged sword because it limits the company’s growth potential compared to its smaller competitors, as reflected in its below-average annual revenue increases of 2.8% for the last two years Competitive supply chain dynamics and steep production costs are reflected in its low gross margin of 12.1% Expenses have increased as a percentage of revenue over the last five years as its operating margin fell by 5 percentage points
General Motors’s stock price of $75.30 implies a valuation ratio of 6.2x forward P/E. Check out our free in-depth research report to learn more about why GM doesn’t pass our bar.
One Industrials Stock to Watch:
Core & Main (CNM)
Market Cap: $9.20 billion
Formerly a division of industrial distributor HD Supply, Core & Main (NYSE:CNM) is a provider of water, wastewater, and fire protection products and services.
Why Does CNM Stand Out?
Impressive 16% annual revenue growth over the last five years indicates it’s winning market share this cycle Share repurchases have amplified shareholder returns as its annual earnings per share growth of 16.7% exceeded its revenue gains over the last two years Free cash flow margin increased by 8.9 percentage points over the last five years, giving the company more capital to invest or return to shareholders
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Core & Main is trading at $49.25 per share, or 18.8x forward P/E. Is now the right time to buy? See for yourself in our full research report, it’s free.
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- Should You Invest in Core & Main (CNM) Based on Bullish Wall Street Views?
May 15, 2026
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) 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 CNMBroker Rating Breakdown Chart 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 ABR
Although 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.
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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.
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Core & Main, Inc. (CNM) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
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- Should You Invest in Core & Main (CNM) Based on Bullish Wall Street Views?
May 15, 2026 · zacks.com
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?
- Core & Main and the Infrastructure Argument No One Is Making Loudly
May 15, 2026
This article first appeared on GuruFocus.
The Argument No One Is Making Loudly
Sixteen consecutive years of positive sales growth is not an accident. It is not a function of a particularly benign cycle, a one-time acquisition, or a favorable macro that lifted every boat. It is what happens when a business owns a critical chokepoint in a $44 billion market, operates from a branch network that took decades to build, and serves an end customer whose underground pipes wear out on a schedule that does not adjust to interest rates.
Is CNM fairly valued? Test your thesis with our free DCF calculator.
Core & Main distributes pipes, valves, fittings, meters, storm drainage components, and fire protection products to the municipalities, private water companies, and contractors who build and maintain the water infrastructure beneath American cities. The company sits at the most defensible position in that supply chain: between 5,000 suppliers who lack the scale to reach 60,000 fragmented local customers, and those customers who lack the purchasing power and logistics infrastructure to go direct. That intermediary position, secured by 370 locations and relationships built over decades, is what has kept revenues growing through recessions, rate cycles, pandemic supply disruptions, and a softening residential market in fiscal 2025.
The market has not been generous to this. The stock trades at approximately $50 per share, putting it at roughly 12.5 times trailing adjusted EBITDA. For a company with a 19% share of a $44 billion domestic market, growing through a combination of organic gains and disciplined acquisition, that multiple prices the business as though the compounding opportunity is modest. The American Society of Civil Engineers grades the country's drinking water infrastructure a C minus and estimates $625 billion is needed over the next two decades to address it. The $55 billion allocated under the Infrastructure Investment and Jobs Act, the first sustained federal commitment to this sector in modern history, was still flowing through state revolving fund programs into local projects as of early 2026. The investment need is structural, not cyclical. Core & Main is the distribution infrastructure through which a meaningful share of it will flow.Core & Main and the Infrastructure Argument No One Is Making Loudly
The Branch Network and What It Takes to Build One
A municipality in need of twelve-inch ductile iron pipe fittings for an emergency repair at six in the morning does not compare prices online and wait three days for delivery. It calls the Core & Main branch in the adjacent zip code, which stocks those fittings, knows the contractor arriving to collect them by name, and can extend the credit terms municipal procurement requires. That relationship has often existed for years. It cannot be replicated by a new entrant with capital and ambition. It requires a branch, trained people, calibrated inventory, and time.
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More than 370 branches in the United States and Canada serve as the distribution infrastructure that makes this possible at scale. Each branch carries inventory calibrated to its local market. Each employs people with technical product knowledge specific to that market's dominant product mix, whether that is fusible high-density polyethylene pipe in regions with aggressive soil conditions, advanced metering infrastructure in municipalities mid-replacement cycle, or fire protection fabrication services in high-density commercial corridors. The economics of the branch model are not glamorous. Gross margins run approximately 26 to 27%, earned through purchasing scale, private label expansion, and pricing discipline. Adjusted EBITDA margins have normalized to 12.2% in fiscal 2025 from the 15.5% peak of fiscal 2022, which reflected the extraordinary pricing environment of the post-pandemic supply disruption. That 12.2% is management's stated floor, and the private label and sourcing initiatives underway are intended to deliver incremental margin improvement from that base rather than defend against further compression.
The branch network is simultaneously the competitive moat and the acquisition platform. When a regional waterworks distributor in an underserved geography comes to market, Core & Main acquires it, integrates it into its purchasing and logistics infrastructure, and expands margins immediately through the scale advantages the parent provides. Fiscal 2025 saw two acquisitions: Canada Waterworks, extending the platform into the Canadian market for the first time, and Pioneer Supply in Oklahoma and Texas, adding five branches in priority growth markets. These deals were small in the context of a $7.65 billion revenue base but follow a pattern consistent for fifteen years. Ten new greenfield branches were also opened during and shortly after fiscal 2025 in markets management identified as having above-average demand profiles. The acquisition machine is not built on hope. It is built on a functioning integration capability, an established pipeline, and the local knowledge to identify where the network has genuine gaps.
Ferguson Enterprises is the only other competitor at national scale. Everything else in the $44 billion addressable market is regional, local, or product-specific. That duopoly, combined with the branch density that both companies have spent years accumulating, creates a structural barrier that capital alone cannot quickly cross. The relationships, the inventory intelligence, and the contractor trust that a well-run branch accumulates over a decade of operation represent a genuine and durable competitive advantage that the current valuation does not fully price.
Three End Markets and the One That Is Changing
Municipal demand, which accounts for roughly 42% of net sales, is driven by the non-discretionary need to repair and replace aging underground infrastructure. Pipes installed in the 1950s and 1960s do not care about interest rates or budget cycles. They fail, and the municipality must replace them, whether or not the federal procurement environment is favorable. Non-residential construction, representing approximately 39% of net sales, is tied to commercial and industrial build activity but carries specific technical product categories, particularly treatment plant solutions and fusible HDPE pipe, where Core & Main's project management capability and product expertise create pricing power that commodity pipe suppliers cannot match. Residential, the smallest end market at roughly 19% of net sales, is the most cyclical and was the source of the volume softness that pressured the second half of fiscal 2025.
That last point deserves more weight than the municipal framing typically allows it. Non-residential and residential together represent roughly 58% of total revenue, and both segments follow project activity in ways that emergency pipe replacement does not. A commercial contractor on an industrial or office development compares suppliers, negotiates pricing, and defers orders when project economics shift. A residential developer responds to lot development margins and permitting timelines. In a material construction downturn, volume across these two segments declines simultaneously, pricing competition increases, and the project backlog thins. The comparison that is tempting to reach for, a utility-like business collecting fees on non-deferrable spend, does not hold for a business where the majority of revenue is project-driven. Core & Main is more resilient than a typical industrial distributor because of the municipal anchor and the product necessity. It is not a utility.
The meter category is where the long-term story is changing. Meter products grew 31.8% year-on-year in fiscal 2024 to $692 million, the fastest growth of any major product line in the portfolio and approximately 9% of net sales at the time. That is the most recently disclosed full-year annual breakdown; throughout fiscal 2025, management consistently described meter sales as outpacing core market growth with growing backlogs and strong shipments, though the pace of a 31% annual expansion is unlikely to repeat in every year ahead. The structural driver is genuine: municipalities replacing manual-read systems with advanced metering infrastructure gain real-time consumption monitoring, remote leak detection, and elimination of physical meter read labor, and the economics of inaction become harder to justify as federal funding flows through state revolving programs into local projects.
The commercial model around meters is different from the rest of Core & Main's product portfolio. The company offers multi-stage smart metering solutions that include meter accessories, network infrastructure, software installation, training, and long-term service contracts. A municipality that purchases meters through Core & Main, has Core & Main coordinate the installation, and signs a service agreement for ongoing network management creates a multi-year revenue relationship from what would otherwise have been a one-time equipment sale. That evolution toward contracted recurring revenue in a product category tied to essential public infrastructure is a genuine change to the quality of the earnings base. It is also accurate to note that a portion of meter demand is linked to new construction and infrastructure upgrade cycles rather than purely non-discretionary replacement; in a broad demand contraction, this category is not entirely insulated from project delays.
The Cash the Business Produces and What It Does With It
Core & Main generated $650 million of operating cash flow in fiscal 2025, a 70% conversion ratio against $931 million of adjusted EBITDA. Free cash flow after $46 million of capital expenditures was $604 million. Distribution businesses release working capital as volumes fall: receivables shrink and inventory investment declines, providing cash precisely when balance sheet flexibility matters most. Core & Main demonstrated this in fiscal 2025's second half, when softening residential demand produced the working capital release that supported $329 million of net debt reduction and $155 million of share repurchases simultaneously. The same mechanics apply in reverse as volumes recover. Rebuilding inventory and extending credit to a growing customer base consumes cash during an upcycle at roughly the same rate it was released in the downturn. Working capital is a timing benefit in a contraction. It does not create value across a full cycle.
Net debt at $1.95 billion and 2.1 times adjusted EBITDA falls within management's stated target range of 1.5 to 3.0 times and is declining. The senior term loan structure, divided between a facility due 2028 and a facility due 2031, provides funding certainty through the demand normalization period. Fiscal 2026 guidance of $950 to $980 million in adjusted EBITDA against a flat pricing and end-market performance assumption means that any recovery in residential demand, any acceleration of IIJA disbursements, or any contribution from recent acquisitions above base case would improve both the absolute cash generation and the leverage trajectory.
The share count is shrinking. Approximately 3.2 million Class A shares were repurchased during fiscal 2025 at an average price near $48, with an additional 800,000 shares bought after year-end. More than $600 million remained authorized at the time of the March 2026 earnings call. For a business with a cost of equity implying returns well above its weighted average cost of capital at current prices, the arithmetic of repurchases is favorable regardless of the near-term demand environment. Adjusted diluted EPS grew 7% to $2.97 in fiscal 2025. The combination of modestly growing earnings and a declining denominator creates a per-share compounding dynamic that the market currently prices at roughly 16.8 times.
Who Holds This and What the Positions Suggest
D1 Capital Partners, Daniel Sundheim's firm, holds 2.6 million shares at approximately $138 million. The 48.85% trim of roughly 2.5 million shares in the most recent period is a significant reduction that deserves honest acknowledgment. A fund with D1's orientation does not hold 2.6 million shares of a waterworks distributor without a specific view. The residual position, held through the trim at an average buy price of $50.45, suggests the reduction reflects portfolio-level risk management rather than a fundamental reassessment. The remaining position at the same approximate average cost basis is still a meaningful expression of conviction.
Samlyn Capital holds 2.8 million shares at $148 million and increased its position 6.8% in the most recent period with approximately 181,000 additional shares against an average buy price of $31.77. Fresh capital added at prices roughly 58% above the historical cost basis is not a passive holder maintaining a position. It is a manager extending a position at materially higher prices, which requires a specific updated view on the forward return at current levels.
Soros Fund Management and Tudor Investment Corp both opened entirely new positions in the same quarter, each acquiring shares at an average price near $52.90. Two new positions at nearly identical entry prices in the same reporting period is not coincidental. Both managers tend toward situations where the risk-reward profile implied by the current price is wider than the market appears to recognize.
DE Shaw more than doubled its position, adding approximately 1.6 million shares for a total of 2.5 million at an average price of $53.29. A position increase of that magnitude from a quantitative firm suggests the stock sits at an intersection of factor characteristics, improving profitability, declining leverage, earnings per share acceleration, and a valuation gap, that the systematic model has flagged as mispriced.
ACK Asset Management holds 900,000 shares representing 5.91% of its entire portfolio with no reported change in the most recent period. The average buy price of $57.09 is above where the stock currently trades. A full position held at a mark-to-market loss through a period of guidance reductions and end-market softness is evidence of a manager who has done the work and arrived at a different conclusion than the price reflects. The absence of reduction is its own form of statement.
What the Current Price Actually Prices
At approximately $50 per share with roughly 195 million shares outstanding, Core & Main's market capitalization is approximately $9.7 billion. Adding net debt of $1.95 billion produces an enterprise value of approximately $11.65 billion. Against trailing adjusted EBITDA of $931 million that implies 12.5 times. Against fiscal 2025 free cash flow of $604 million the EV/FCF multiple is approximately 19.3 times.Core & Main and the Infrastructure Argument No One Is Making Loudly
Ferguson Enterprises, the only direct national competitor, trades at 16.1 times EBITDA with a 14.5% ROIC. Advanced Drainage Systems distributes storm drainage products, overlaps substantially with Core & Main's customer base, and trades at 12.4 times trailing EBITDA on a net-cash balance sheet with a 22.2% ROIC that reflects the margin advantages of manufacturing relative to pure distribution. SiteOne Landscape Supply, the landscape distribution analog and a proxy for specialty distributor multiples in adjacent categories, commands 17.2 times EBITDA.
The Ferguson comparison is the most direct. One national waterworks distributor trades at 16 times EBITDA. Its only national competitor trades at 12.5 times. The ROIC differential, which currently favors Ferguson at 14.5% versus Core & Main at approximately 11%, reflects the historical leverage from the Clayton, Dubilier acquisition rather than a permanent quality gap. As debt declines toward management's target, that differential narrows.
An owner underwriting Core & Main at today's price is starting from a free cash flow yield of approximately 5.2% on enterprise value, with a buyback program actively reducing the share count and a management team guiding to $950 to $980 million of adjusted EBITDA in fiscal 2026. A stable multiple at 12.5 times on the midpoint $965 million produces an enterprise value of $12.1 billion and an equity value near $52 per share, a modest premium to today's price without any re-rating. A migration toward Ferguson's 16 times multiple on the same earnings base produces an equity value near $65 per share, a 30% return. The opportunity cost of not owning this business is the opportunity cost of not owning the infrastructure distribution layer through which a structurally underfunded sector will direct hundreds of billions of dollars over the next decade.
The downside requires honest framing, and the context around it matters. Core & Main has been a public company since 2021 and operated in its current form as a private equity asset from 2017; it has not traded through a full construction cycle in its present structure. The fiscal 2022 revenue expansion and the 15.5% EBITDA margin peak of that year were substantially driven by product price inflation during the post-pandemic supply disruption rather than purely organic share gains. That tailwind has reversed, and the current 12.2% margin reflects its absence. A broad construction downturn, one that contracts non-residential project starts and residential lot development simultaneously, would put pressure on roughly 58% of revenue at once. Working capital would release cash as volumes fell, but rebuilding inventory and customer credit when the cycle turned would consume that same cash in the recovery. The senior term loans mature in 2028 and 2031, creating no near-term refinancing pressure; if interest rates were to rise during a demand contraction rather than fall alongside it, the variable-rate exposure would compound operating pressure in a way that a fixed-rate structure would not.
At 2.1 times net leverage, the balance sheet is not fragile. But an owner entering at 12.5 times EBITDA should do so understanding what this business is: a well-run distribution operation with genuine structural advantages and real cyclical exposure across a majority of its revenue, a limited clean public history in its current form, and a balance sheet still normalizing from a decade of consolidation. Whether the Ferguson premium is achievable depends on whether the ROIC recovery and the meter transition deliver enough evidence over the next twelve to eighteen months to close a 3.5-turn gap that may partly reflect structural differences rather than temporary distortions.
Final Thought
The business that distributes the pipes, valves, meters, and fittings through which American water infrastructure is built and maintained does not generate headlines. It does not have a data center angle, a defense contract, or a software platform. It has branches, relationships, and a customer base that replaces what corrodes. That is not a less interesting business. It is a more durable one.
Core & Main has compounded through recessions, rate cycles, and two distinct housing downturns by being the reliable, technically capable, locally present distribution partner that municipalities and contractors cannot easily replace. The meter business is changing the quality of the revenue base in ways that a pure distribution multiple does not fully capture. The balance sheet is improving on schedule, not dramatically, but consistently.
For a long-term owner, the combination of a structural market position, a recovering earnings trajectory, a balance sheet generating more cash than the business requires to operate, and a persistent valuation discount to the only directly comparable company at national scale is a more compelling starting point than current prices suggest. The infrastructure beneath American cities wears out. Core & Main will sell much of what is needed to replace it. The 16th consecutive year of positive sales growth will not be the last.
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- Research Solutions Inc. (RSSS) Matches Q3 Earnings Estimates
May 14, 2026
Research Solutions Inc. (RSSS) came out with quarterly earnings of $0.04 per share, in line with the Zacks Consensus Estimate . This compares to earnings of $0.03 per share a year ago. These figures are adjusted for non-recurring items.
A quarter ago, it was expected that this company would post earnings of $0.03 per share when it actually produced earnings of $0.03, delivering no surprise.
Over the last four quarters, the company has surpassed consensus EPS estimates just once.
Research Solutions, which belongs to the Zacks Commercial Printing industry, posted revenues of $12.12 million for the quarter ended March 2026, missing the Zacks Consensus Estimate by 2.87%. This compares to year-ago revenues of $12.66 million. The company has topped consensus revenue estimates two times 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.
Research Solutions shares have lost about 14.6% since the beginning of the year versus the S&P 500's gain of 8.8%.
What's Next for Research Solutions?
While Research Solutions 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 Research Solutions 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 $0.04 on $12.36 million in revenues for the coming quarter and $0.13 on $48.95 million in revenues for the current fiscal year.
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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, Commercial Printing is currently in the bottom 14% 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 broader Zacks Industrial Products sector, Core & Main (CNM), is yet to report results for the quarter ended April 2026.
This distributor of water and fire protection products is expected to post quarterly earnings of $0.70 per share in its upcoming report, which represents a year-over-year change of +34.6%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Core & Main's revenues are expected to be $1.9 billion, down 0.4% from the year-ago quarter.
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Research Solutions Inc. (RSSS) : Free Stock Analysis Report
Core & Main, Inc. (CNM) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
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- Core & Main (CNM) Dips More Than Broader Market: What You Should Know
May 12, 2026
Core & Main (CNM) 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.
Story Continues
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.
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Core & Main, Inc. (CNM) : Free Stock Analysis Report
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- Core & Main (CNM) Dips More Than Broader Market: What You Should Know
May 12, 2026 · zacks.com
The latest trading day saw Core & Main (CNM) settling at $47.5, representing a -2.88% change from its previous close.
- A Look At Core & Main (CNM) Valuation After Recent Share Price Weakness
May 6, 2026
Get insights on thousands of stocks from the global community of over 7 million individual investors at Simply Wall St.
Core & Main stock moves: returns snapshot and business scale
Core & Main (CNM) has seen mixed share performance recently, with a small 1 day gain alongside declines over the past week, month and past 3 months. This has prompted closer attention to the stock’s fundamentals.
The company reports annual revenue of US$7,647.0m and net income of US$441.0m, supported by water and wastewater transmission products, and has a market value of about US$9.4b.
See our latest analysis for Core & Main.
At the latest share price of US$49.04, Core & Main’s short term share price returns have been weak, while its three year total shareholder return of 83.33% points to a much stronger longer term record.
If Core & Main’s recent pullback has you reassessing your watchlist, this can be a good moment to widen your search and check out 34 power grid technology and infrastructure stocks
So with Core & Main’s recent share price weakness, alongside annual revenue of US$7,647.0m and net income of US$441.0m, is the current valuation overlooking its scale, or is the market already accounting for potential future growth?
Most Popular Narrative: 19% Undervalued
Core & Main’s most followed narrative pegs fair value at about $60.56 per share, compared with the recent $49.04 close, and builds that gap on detailed long term forecasts.
Core & Main anticipates generating strong operating cash flows, enabling further investment in organic growth and M&A, in addition to returning capital to shareholders through share repurchases, positively impacting earnings per share.
Read the complete narrative.
Want to see what sits behind that buyback story and cash flow confidence? The narrative leans heavily on sustained revenue expansion, thicker margins, and a richer earnings multiple to support that higher fair value.
Result: Fair Value of $60.56 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, that upside story can unravel if construction activity slows or if tariffs and input cost pressures squeeze margins more than analysts currently factor in.
Find out about the key risks to this Core & Main narrative.
Another angle from the SWS DCF model
The popular narrative points to fair value of $60.56, yet the Simply Wall St DCF model tells a different story, with a future cash flow value of $35.78 per share. That implies Core & Main is trading above this estimate. Which set of assumptions do you find more realistic?
Story Continues
Look into how the SWS DCF model arrives at its fair value.CNM Discounted Cash Flow as at May 2026
Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Core & Main for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 51 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.
Next Steps
Given the mix of confidence and caution in this story, it makes sense to move quickly: review the full data set and weigh both sides of the thesis using 5 key rewards and 1 important warning sign
Looking for more investment ideas?
If Core & Main is on your radar, consider widening your search. The right screener can surface opportunities you might regret missing later.
Target reliable income by scanning for companies with resilient payouts using the 13 dividend fortresses. Hunt for quality at a reasonable price by running results through the 51 high quality undervalued stocks. Zero in on financially sturdy businesses by filtering with the solid balance sheet and fundamentals stocks screener (45 results).
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include CNM.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
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- Core & Main (CNM) Dips More Than Broader Market: What You Should Know
May 4, 2026
In the latest close session, Core & Main (CNM) was down 1.14% at $48.46. The stock fell short of the S&P 500, which registered a loss of 0.41% for the day. Elsewhere, the Dow saw a downswing of 1.13%, while the tech-heavy Nasdaq depreciated by 0.19%.
Shares of the distributor of water and fire protection products have depreciated by 3.79% over the course of the past month, underperforming the Industrial Products sector's gain of 7.51%, and the S&P 500's gain of 10.02%.
The upcoming earnings release of Core & Main will be of great interest to investors. 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. Alongside, our most recent consensus estimate is anticipating revenue of $1.9 billion, indicating a 0.37% downward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $3.11 per share and a revenue of $7.91 billion, demonstrating changes of +4.71% and +3.48%, respectively, from the preceding year.
Investors should also pay attention to any latest changes in analyst estimates for Core & Main. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% 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).
Investors should also note Core & Main's current valuation metrics, including its Forward P/E ratio of 15.74. This signifies a discount in comparison to the average Forward P/E of 17.14 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. By the end of yesterday's trading, the Manufacturing - Tools & Related Products industry had an average PEG ratio of 1.44.
Story Continues
The Manufacturing - Tools & Related Products industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 51, putting it in the top 21% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Core & Main, Inc. (CNM) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
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- Core & Main (CNM) Declines More Than Market: Some Information for Investors
Apr 28, 2026
Core & Main (CNM) 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.
Story Continues
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.
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Core & Main, Inc. (CNM) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
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