CNM - Why Shares in Core & Main Surged This Week
2024-03-22 07:36:22 ET
Shares in water infrastructure distribution company Core & Main (NYSE: CNM) rose 13.7% in the week to Friday morning, according to data provided by S&P Global Market Intelligence . The move comes after the release of its fourth-quarter earnings. Investors liked what they saw, and the stock is now up 43% in 2024 and 168% over the last year.
It might seem churlish to describe last year as "challenging," but the company's full-year sales only rose 0.8% to $6.7 billion in 2023. Moreover, after a couple of years of solid growth, the company's end markets slowed last year, partly in response to a natural growth correction and rising interest rates putting the brakes on residential construction activity.
Core & Main's end markets are split between the relatively stable municipal market (39%), the nonresidential market (39%), and the residential market (22%), and slowing housing starts have hit the latter.
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Why Shares in Core & Main Surged This Week