Is Core & Main (CNM) Stock Outpacing Its Business Services Peers This Year?

For those looking to find strong Business Services stocks, it is prudent to search for companies in the group that are outperforming their peers. Core & Main (CNM) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? Let’s take a closer look at the stock’s year-to-date performance to find out.

Core & Main is one of 344 companies in the Business Services group. The Business Services group currently sits at #5 within the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.

The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. Core & Main is currently sporting a Zacks Rank of #1 (Strong Buy).

Within the past quarter, the Zacks Consensus Estimate for CNM’s full-year earnings has moved 5.9% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

Our latest available data shows that CNM has returned about 16.4% since the start of the calendar year. At the same time, Business Services stocks have gained an average of 8.7%. This means that Core & Main is performing better than its sector in terms of year-to-date returns.

Another Business Services stock, which has outperformed the sector so far this year, is Cyxtera Technologies, Inc. (CYXT). The stock has returned 28.1% year-to-date.

For Cyxtera Technologies, Inc. the consensus EPS estimate for the current year has increased 9.3% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

To break things down more, Core & Main belongs to the Waste Removal Services industry, a group that includes 16 individual companies and currently sits at #48 in the Zacks Industry Rank. Stocks in this group have gained about 1.3% so far this year, so CNM is performing better this group in terms of year-to-date returns.

On the other hand, Cyxtera Technologies, Inc. belongs to the Technology Services industry. This 199-stock industry is currently ranked #101. The industry has moved +15.2% year to date.

Going forward, investors interested in Business Services stocks should continue to pay close attention to Core & Main and Cyxtera Technologies, Inc. as they could maintain their solid performance.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.