- Core & Main announced very strong 2021 fourth-quarter and full-year results, and its valuation appears attractive.
- The high PVC commodity prices, supply chain issues, and product shortages that drove strong earnings may be moderating, creating risk of a short-term pullback that is difficult to model.
- My original thesis for investing in Core & Main continues to hold, and the long-term outlook continues to be attractive.
- I would refrain from aggressively adding to my position until commodity prices stabilize, and the company's normalized earnings power becomes clearer.
For further details see:
Core & Main: Accelerating Earnings And Attractive Valuation, But Don't Get Overly Excited