Core & Main Flashes Bullish Outlier Signals

CNM focuses on water, wastewater, storm drainage and fire protection products, along with related services. Its customers include municipalities, private water companies, and contractors. The company is a big player in improving and maintaining the U.S. water infrastructure.

Financially, CNM’s first-quarter fiscal 2025 report showed a record $1.9 billion in net sales. The sales growth was driven by volume, suggesting an overall uptick, and adjusted EBITDA rose 3%, to $224 million. CNM excelled in municipal construction, which it attributed to funding from the Infrastructure Investment and Jobs Act, as well as meters and treatment plant solutions.

No wonder CNM shares are up 14% this year – and they could rise more. MoneyFlows data shows how Big Money investors are again betting heavily on the stock.

Big Money Floods Core & Main

Institutional volumes reveal plenty. In the last year, CNM has enjoyed strong investor demand, which we believe to be institutional support.

Each green bar signals unusually large volumes in CNM shares. They reflect our proprietary inflow signal, pushing the stock higher:

Plenty of industrials names are under accumulation right now. But there’s a powerful fundamental story happening with Core & Main.

Core & Main Fundamental Analysis

Institutional support and a healthy fundamental backdrop make this company worth investigating. As you can see, CNM has had strong sales and earnings growth:

• 3-year sales growth rate (+14.9%)
• 3-year EPS growth rate (+39.1%)

Source: FactSet

Also, EPS is estimated to ramp higher this year by +15.1%.

Now it makes sense why the stock has been generating Big Money interest. CNM has a track record of strong financial performance.

Marrying great fundamentals with MoneyFlows software has found some big winning stocks over the long term.

Core & Main has been a top-rated stock at MoneyFlows. That means the stock has unusual buy pressure and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis.

It just made the rare Outlier 20 report for the first time in over a year. But it’s been an outlier multiple times in the last three years. The blue bars below show when CNM was a top pick…boosted by Big Money:

Tracking unusual volumes reveals the power of money flows.

This is a trait that most outlier stocks exhibit…the best of the best. Big Money demand drives stocks upward.

Core & Main Price Prediction

The CNM action isn’t new at all. Big Money buying in the shares is signaling to take notice. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a diversified portfolio.

Disclosure: the author holds no position in CNM at the time of publication.

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