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GMS (GMS) Outpaces Stock Market Gains: What You Should Know

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GMS (GMS) closed the most recent trading day at $49.73, moving +1.1% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.1%.

Heading into today, shares of the company had gained 4.57% over the past month, outpacing the Retail-Wholesale sector's loss of 3.69% and the S&P 500's gain of 1.53% in that time.

Investors will be hoping for strength from GMS as it approaches its next earnings release. The company is expected to report EPS of $1.30, up 38.3% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $961.8 million, up 19.84% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.76 per share and revenue of $3.93 billion. These totals would mark changes of +34.46% and +19.27%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for GMS. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 6.27% higher within the past month. GMS is currently a Zacks Rank #2 (Buy).

Investors should also note GMS's current valuation metrics, including its Forward P/E ratio of 10.33. Its industry sports an average Forward P/E of 16.36, so we one might conclude that GMS is trading at a discount comparatively.

The Building Products - Retail industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 82, which puts it in the top 33% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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