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GMS (GMS) Stock Sinks As Market Gains: What You Should Know

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GMS (GMS) closed at $49.67 in the latest trading session, marking a -1.35% move from the prior day. This change lagged the S&P 500's 0.26% gain on the day.

Prior to today's trading, shares of the company had gained 11.91% over the past month. This has outpaced the Retail-Wholesale sector's loss of 3.65% and the S&P 500's gain of 2.37% in that time.

GMS will be looking to display strength as it nears its next earnings release. On that day, GMS is projected to report earnings of $1.30 per share, which would represent year-over-year growth of 38.3%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $961.8 million, up 19.84% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $4.76 per share and revenue of $3.93 billion, which would represent changes of +34.46% and +19.27%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for GMS. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. Over the past month, the Zacks Consensus EPS estimate has moved 6.27% higher. GMS currently has a Zacks Rank of #2 (Buy).

Digging into valuation, GMS currently has a Forward P/E ratio of 10.57. This valuation marks a discount compared to its industry's average Forward P/E of 16.44.

The Building Products - Retail industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 63, which puts it in the top 25% 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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