Shares of CNM began the year as a market favorite and held a high position on the SIA Russell 1000 Index Report. After a significant rally in the early part of 2024, the shares entered a consolidation phase in June, during which the stock moved down the relative strength matrix. Shares fell from $60 to just under $40, and as a result, CNM’s position in the relative strength matrix dropped into the Unfavored zone, reaching position #760, severely underperforming the broad market during this period. However, the consolidation phase appears to have ended, with shares of CNM gapping up after a strong financial report surprised analysts with solid third-quarter results. In the first attached SIA matrix position chart, the period of underperformance is circled, and the subsequent upward movement is marked with an arrow. The second chart presents a weekly candlestick chart, which shows the stock’s rise throughout 2023 and 2024, the consolidation pattern during the past summer, and the resulting breakout, highlighted with a green arrow. Shares of CNM have posted impressive returns over the past months, with a monthly return of 14.30%, a quarterly return of 41.55%, and a year-to-date return of 33.28%. This compares favorably to the S&P Midcap 400 Index benchmark, which posted returns of 1.06%, 12.82%, and 17.48%, respectively, for the same periods.
Additionally, you will find a clipping on the candlestick chart that shows all the SIA reports that CNM is a constituent of, showing CNM as a highly ranked member in the Favored Zone of each those SIA reports, with an overall SIA rank of 91.7% across all reports. Core & Main is a leading distributor in the U.S. of water, wastewater, storm drainage, fire protection products, and related services.
A chart with a 2% point-and-figure format is also presented, overlaid with the SIA matrix position chart tool. This clearly shows the period of underperformance (yellow & red), followed by the recent move back into the Favored zone (green). The point-and-figure chart illustrates a powerful triple-top breakout at $47.40, a spread triple-top at $54.44, and it approaching resistance levels at $60.11 and $62.54, which were the peaks reached in June. Beyond this level, a potential target resistance of $77.76 can be extrapolated from the prior spread triple-top consolidation level that was just surpassed after the most recent gap-up. Currently, shares of Core & Main have a favorable SMAX score of 9 out of 10, which serves as a near-term comparative measure against all asset classes, including cash, bonds, currencies, commodities, and equities.
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