|Bid||0.00 x 800|
|Ask||0.00 x 2900|
|Day's Range||14.94 - 15.86|
|52 Week Range||13.61 - 33.70|
|Beta (3Y Monthly)||2.39|
|PE Ratio (TTM)||13.14|
|Earnings Date||Mar 4, 2019 - Mar 8, 2019|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||22.00|
GMS Inc NYSE:GMSView full report here! Summary * Bearish sentiment is low Bearish sentimentShort interest | PositiveShort interest is extremely low for GMS with fewer than 1% of shares on loan. This could indicate that investors who seek to profit from falling equity prices are not currently targeting GMS. Money flowETF/Index ownership | NeutralETF activity is neutral. ETFs that hold GMS had net inflows of $1.14 billion over the last one-month. While these are not among the highest inflows of the last year, the rate of inflow is increasing. Economic sentimentPMI by IHS Markit | NeutralAccording to the latest IHS Markit Purchasing Managers' Index (PMI) data, output in the Industrials sector is rising. The rate of growth is weak relative to the trend shown over the past year, however. Credit worthinessCredit default swapCDS data is not available for this security.Please send all inquiries related to the report to email@example.com.Charts and report PDFs will only be available for 30 days after publishing.This document has been produced for information purposes only and is not to be relied upon or as construed as investment advice. To the fullest extent permitted by law, IHS Markit disclaims any responsibility or liability, whether in contract, tort (including, without limitation, negligence), equity or otherwise, for any loss or damage arising from any reliance on or the use of this material in any way. Please view the full legal disclaimer and methodology information on pages 2-3 of the full report.
Today we'll evaluate GMS Inc. (NYSE:GMS) to determine whether it could have potential as an investment idea. In particular, we'll consider its Return On Capital Employed (ROCE), as that canRead More...
While GMS reports lower-than expected fiscal Q3 results, efficient pricing system, acquisitions, higher commercial activity along with solid cost-reduction initiatives help it to post higher earnings.
GMS Inc. (GMS), a leading North American specialty distributor of interior building products, today announced that it has acquired the assets of interior building products distributor Commercial Builders Group, LLC (“CBG”) in LaPlace, Louisiana. Since its founding in 2005, CBG has been serving commercial and residential customers in New Orleans and surrounding southeastern Louisiana markets. CBG operates from two facilities located in LaPlace, LA and Walker, LA.
Up to two-thirds of all deals fail, creating barriers for corporations hoping to achieve growth through mergers and acquisitions.
Homebuilder and housing stocks were hammered in 2018, particularly in the second half of the year. Concerns about new home construction started the declines in the summer. Broad market declines in the fourth quarter only added to the pressure. Indeed, the iShares U.S. Home Construction ETF (BATS:ITB) dropped some 31% last year. And I argued late last year that the declines had gone too far. In October -- a bit early -- I called out six housing stocks for investors looking to time the bottom. ITB was my pick for the Best ETFs of 2019ITB has rallied in 2019, gaining some 17%. Other housing stocks -- including the biggest of the homebuilder stocks, Lennar (NYSE:LEN) -- have done even better. But there could be more upside ahead. Housing starts data have been somewhat disappointing of late, but remodel & renovation demand continues to be strong. And most of the sector's stocks still sit below 2018 highs.There are risks, admittedly. The gains this year have made valuations less compelling than they were toward the end of 2018. More macro jitters in the broad market could pressure housing stocks. And there are some concerns relative to margins as tariffs have raised certain input costs.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 9 Best Stocks to Buy on U.S.-China Trade Optimism For now, however, the risks seem worth taking. And these five stocks could be the biggest winners if housing and construction stocks continue to rally. TRI Pointe Group (TPH)Source: Shutterstock Homebuilder stocks have rallied, as noted, which has moved valuations from close to ridiculous to simply cheap. TRI Pointe Group (NYSE:TPH) has joined the gains, rising 19% so far this year.But there's still a case for nice upside here. TRI Pointe has exposure to some of the better markets in the U.S., including Arizona, California, Texas, and Colorado. Fourth quarter results this week were solid, if unspectacular - but guidance still suggests TPH is trading at something like 8x 2019 EPS. The stock even trades at a modest discount to book - a rare occurrence.Like other homebuilder stocks, TPH has risks. But strong geographic markets and higher price points (the company is guiding for an average sales price of $610-$620K in 2019) drive exposure to the stronger areas of the housing market. As long as the economy cooperates, TPH should keep moving higher as the year rolls on. Trex (TREX)Source: Shutterstock There are few growth stocks in the construction space, but Trex (NYSE:TREX) is one of them. The company's namesake composite decking product has seen huge market share growth, leading TREX stock to nearly quadruple over the past five years. And the innovative product should drive more growth in years ahead while the company adds on ancillary products like lighting and landscaping accessories.TREX stock isn't cheap, trading at nearly 27x 2020 EPS estimates. But revenue growth should continue to be around 10%, with EPS growth in the mid-teens. International markets and new products can drive longer-term demand. * 7 Reasons Kraft Heinz Stock Is a Contrarian Buy TREX stock is unique in the industry, considering its valuation, but for good reason … Anyone who has worked with Trex products knows they're an improvement on traditional wood offerings - and that should drive growth for many years to come, as well as upside in TREX stock. Universal Forest Products (UFPI)Source: Shutterstock Wood products manufacturer Universal Forest Products (NASDAQ:UFPI) competes with Trex in composites but still focuses primarily on traditional wood offerings.It's been a wonderful business: UFPI has returned over 10% a year since its 1993 initial public offering (IPO). And while UFPI came down amid residential housing concerns last year, it actually has a nicely diversified business. The company's exposure to the industrial sector is growing through its concrete forming offering. Home Depot (NYSE:HD) generates nearly 19% of total sales, most of which obviously are in the less-cyclical repair and remodel category.UFPI, too, has rallied, bouncing 30% off December lows. But there's another 25% to go to get back to 2018 highs and the stock trades at a reasonable 10.5x forward earnings. A lightly leveraged balance sheet means UFPI can look to M&A to drive further growth going forward.UFPI stock probably isn't the most compelling stock in the sector, particularly back above $31. But there's a nice case here that the next few years could be like the last 25 -- with Universal Forest Products stock delivering above-market returns. GMS (GMS)Source: Shutterstock I've recommended drywall distributor GMS (NYSE:GMS) a few times, including in October, and I own a stake in the stock as well. It's been rough going for the stock, which still is down 37% over the past year. High leverage and worries about margins have continued to pressure GMS shares.But those factors also mean there's a lot more potential upside even after a 48% gain from December lows. GMS remains seriously cheap, at 6x forward earnings and under 7x EBITDA. Margin concerns seem overblown, as in recent quarters GMS has managed through price hikes from suppliers, tariff issues, and rising input costs (notably for its steel framing business) - and yet has kept gross margins reasonably intact.There are risks here. Last year's acquisition of WSB Titan gave GMS increased exposure to Canada where housing market concerns are more significant. The leverage on the balance sheet can be an anchor on the stock, as it was for much of 2018. * Build Something With These 5 Homebuilder ETFs But $20 remains far too cheap even with those risks. And so I still think GMS is the most attractive play in the space. Armstrong Flooring (AFI)Source: Shutterstock Small-cap Armstrong Flooring (NYSE:AFI) has been volatile since its spinoff from Armstrong World Industries (NYSE:AWI) back in 2016. But there are reasons to see a recent bounce continuing.The company sold its wood flooring business in November, which drove a 12%+ increase in AFI stock. The move brought in cash to pay down debt, strengthening the balance sheet. An associated cost reduction plan should help earnings, and the move allows Armstrong to focus on higher-growth products like luxury vinyl tile (LVT).More work is needed, and this is a bit of a turnaround story. P/E multiples don't look particularly attractive (AFI stock trades at almost 25x 2019 consensus EPS), but thin margins should drive growth and improve the valuation from that standpoint. Q4 earnings next week could be a catalyst but expectations have risen as the stock has gained 25% so far this year.Still, there's an intriguing case here, and definite room for improvement. LVT clearly is a growth product, and it could drive stronger results in 2019 and beyond. AFI might be nicer at a cheaper price, but below $15 it's still quite attractive.As of this writing, Vince Martin is long shares of GMS Inc. He has no positions in any securities mentioned. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * The 5 STARS Stocks That Continue to Define the Future * 7 of the Best ETFs to Buy for a Rock-Solid Portfolio * 5 Real Estate Stocks to Buy for Dividend Income Compare Brokers The post 5 Housing Stocks to Buy for Renewed Homebuilder Confidence appeared first on InvestorPlace.
GMS Inc. (GMS) (the “Company”), a leading North American distributor of wallboard and suspended ceilings systems, announced today that it will release its financial results for the fiscal third quarter ended January 31, 2019 before the market opens on the New York Stock Exchange on Tuesday, March 5, 2019. A conference call will be held that same day at 8.30 a.m. eastern time to review financial results, discuss recent events and conduct a question-and-answer session. The conference call will be available in the “Investors” section of the Company’s website at www.gms.com.
In 2018, even the brightest industrial stocks weren't the best stocks for investors. The industrial sector had a rough year, as concerns about China and potentially slowing growth led investors to flee the space. Indeed, as Barron's pointed out, the S&P 500 Industrial Sector Index lost 16% in 2018 -- erasing some $350 billion in market value. So far, however, 2019 has been better. The index is up over 9% already YTD, as cyclical concerns have faded. Those concerns may rear their head again -- and investors still need to be cautious with the sector. But for those investors who are looking for the best industrial stocks, these five all fit the bill. InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 10 Stocks to Sell in February And with some help from the broad market and the economy as a whole, this time around they could be big winners for the rest of the year -- and beyond. Source: Shutterstock ### 3M (MMM) The case for 3M (NYSE:MMM) is pretty simple. The diversified manufacturer has been one of the best buy-and-hold industrial stocks in the market for years now. 3M isn't immune to the economic cycle, to be sure, but over its 117-year history, it has seen all sorts of economic environments. No matter what has come, over most multiyear periods, MMM stock has delivered market-beating, double-digit annual returns. Of late, however, that hasn't been the case. MMM has pulled back from early 2018 highs -- and actually is down about 22% over the past year. But after a solid Q4 report on Tuesday morning, 3M looks to be on track. And under $200, the stock trades at a reasonable 18.5x the midpoint of 2019 EPS guidance. A 2.8% dividend adds income as well. MMM isn't going to be a torrid grower. But I've recommended it in the past as one of the best stocks to buy for young retirees -- and at this price, investors of all ages at least should take a long look. Source: Jan Tik via Flickr ### GMS (GMS) Drywall and building products distributor GMS (NYSE:GMS) was hammered in 2018, as were many housing-related plays. But GMS stock, along with the sector as the whole, has started to recover in 2019. And there's more room to run, one reason GMS is one of my largest personal positions. There are risks here. GMS has a heavily indebted balance sheet. It has exposure to new residential construction -- which already has slowed noticeably -- and commercial construction -- which could slow if the economy turns. But there are real rewards here, too. I highlighted GMS last year as a small-cap stock that could double, and at $19, that's still the case. The stock trades at less than 6x forward EPS estimates, and growth and margin expansion have continued of late. GMS is looking to pay down debt, which should further de-risk the story and help the equity value going forward. * 7 High-Dividend Stocks Yielding More Than 5% (Plus a Bonus) Again, caution needs to be exercised here: this is a high-risk play. But the valuation and the opportunity for further growth, multiple expansion and deleveraging mean that GMS could be one of the best stocks in the market, particularly if investors get more aggressive in 2019. Source: Shutterstock ### United Parcel Service (UPS) Investors simply don't trust United Parcel Service (NYSE:UPS) anymore, and with some reason. UPS stock basically has been "dead money" for five years now. Long-running worries remain that Amazon.com (NASDAQ:AMZN) eventually will compete with both UPS and rival FedEx (NYSE:FDX). But it seems too early to write UPS off just yet. Earnings still are growing. A massive capital spending boost catalyzed by tax reform should drive savings in the future. And a 3.6% dividend yield should continue to rise for at least the next few years. Here, too, there are risks. A macro downturn wouldn't help the cause, and Amazon is a worthy competitor should it more aggressively enter the space. But at around 13x earnings, at least some of those risks are priced in. And there's reason to think UPS, near the lower end of its multiyear range, should have at least one more rally in it. Source: Shutterstock ### DowDuPont (DWDP) In December, I called DowDuPont (NYSE:DWDP) one of 15 2018 losers that would be among the best stocks for 2019. And indeed, DWDP has bounced nicely, rising almost 20% off December lows and almost 12% so far in 2019. At $58, the gains likely aren't over. DowDuPont still has value to unlock as it breaks itself up into three companies in the coming years. Index moves and investor impatience likely led to at least some of the selling pressure in 2018 (though cyclical worries about the chemical sector didn't help), which should further ease in 2019-2020 as the process plays out. * 7 Stocks That Could Double in 2019 It's worth remembering that investors cheered the initial plans, only to forget about their benefits amid growing concerns about macro growth. As investors are reminded of the opportunity -- and perhaps become less worried about the risks -- DWDP should continue to climb. Source: Becky Wetherington via Flickr (modified) ### Honeywell (HON) Honeywell International (NYSE:HON) executed a pair of spinoffs itself last year, distributing shares of Resideo Technologies (NYSE:REZI) and Garrett Motion (NYSE:GTX). Since the spins, and amid the saga at rival General Electric (NYSE:GE), HON stock seems almost forgotten. It shouldn't be. Even the slimmer Honeywell looks like one of the premier industrial stocks in the market. Valuation isn't compelling perhaps, with HON trading at 18x forward EPS and yielding 2.3%. But Honeywell continues to grow nicely, and its diversified portfolio (both in terms of products and geographies) provides some protection to upheaval in individual markets. Like 3M, Honeywell is going to trade with the cycle -- and that's a risk. But like MMM, HON stock has been a long-term outperformer. For investors who still trust the cycle and are looking for a set-it-and-forget-it type of play, Honeywell stock might be the right choice. As of this writing, Vince Martin is long shares of GMS Inc. He has no positions in any other securities mentioned. ### More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Smart Money Stocks to Buy for the Rest of the Year * 10 Best Consumer Stocks to Buy in 2019 * 10 Triple-A Stocks to Buy in February Compare Brokers The post 5 Industrial Stocks to Buy appeared first on InvestorPlace.
We often see insiders buying up shares in companies that perform well over the long term. On the other hand, we'd be remiss not to mention that insider sales have Read More...
At this point, Caterpillar (NYSE:CAT) looks almost absurdly cheap. Caterpillar earnings doubled in 2017, and are guided up close to 70% this year. Yet Caterpillar stock trades at just 11x EPS guidance, and the CAT stock price actually has declined 19% over the past year. But CAT is a cyclical stock, which means investors need to consider much more than just one- and two-year growth periods. After all, Caterpillar earnings are rising 200%+ over two years but they had declined 60% over the previous four. Revenue dropped each year over that period. It was the first time ever (including during the Great Depression) that Caterpillar sales had fallen for four consecutive years. InvestorPlace - Stock Market News, Stock Advice & Trading Tips * The 7 Best Stocks in the Entrepreneur Index In theory, a cyclical stock like Caterpillar stock should be cheap at the top of the cycle. And the weakness in broad markets, along with an inverted yield curve, strongly suggests that the U.S. and global economies indeed are near a top. If that's the case, the CAT stock price isn't nearly as cheap as it looks. But there are other factors to consider when it comes to Caterpillar stock. Three other key questions will help determine whether the market was right in selling off CAT or if the decline from January highs has created a buying opportunity. ### 1\. Where Are We In the Cycle? Again, the most important question for the CAT stock price is understanding where we are in the cycle. In theory, a cyclical like CAT or John Deere (NYSE:DE) should see its earnings multiple contract at the top of the cycle and expand at the bottom. That same phenomenon helps explain why chip stock Micron Technology (NASDAQ:MU) trades at less than 4x earnings. Indeed, even when the CAT stock price hit multi-year lows in early 2016, the stock still traded at a high-teen multiple to what investors believed were depressed earnings. Now, investors see something closer to a peak coming in 2019 or 2020 or worse if the economy turns. Few stocks have more political risk than CAT, as I wrote last month. And so the compressed multiple makes some sense. Of course, that multiple only makes sense if the cycle actually is turning. And for all the worries in the market right now, there isn't a lot of evidence that turn is coming yet. In fact, Caterpillar posted a blowout Q3, with operating profit growth of 41%. YTD, revenue in Asia has risen 36% - with particular strength in China For investors who believe the recent market sell-off is overdone, Caterpillar stock at least has to be given a long look. ### 2\. Can Margins Go Any Higher? From a cyclical standpoint, however, there is a concern in Caterpillar's numbers. Operating margins are at a peak. In fact, they're higher now than in 2012, when Caterpillar benefited from the so-called "commodity supercycle". For a cyclical stock, that's not necessarily good news. Peak margins generally aren't sustainable. Indeed, adjusted margins are 16.6% over the past four quarters, according to the company's Q3 presentation. They were just 7.2% in 2016 - and averaged 11% over the past six years. If those margins settle back in even the 13-14% range, earnings drop over 10%, and the CAT stock price looks closer to 13-14x earnings. That's not far from the stock's historical rang, and in that context Caterpillar stock isn't all that cheap. That said, it's possible that margins can at least stay around current levels. Caterpillar took billions of dollars in cost out of the business over the past couple of years. Those costs have risen of late - Caterpillar has added flexible workers of late - but been leveraged by revenue growth. As such, margins probably should be higher than even the salad days of 2011 and 2012. The question is how much higher and for how long. ### 3\. Will Cost Cuts Have a Cost? That said, one interesting question is whether those cost cuts will have an impact at some point. Caterpillar's workforce dropped 20% between the end of 2013 and the end of 2017. It's risen 7% over the past year, as sales have rebounded. But Caterpillar still is making the same amount of revenue on the back of roughly 15% fewer workers. Is that, itself, sustainable? I've long worried it might not be but performance over the past seven quarters would seem to suggest otherwise. It's possible if not likely at this point that Caterpillar simply is leaner. But even that means that there's likely little room left for improvement and not much the company itself can do to move margins much higher. ### 4\. Is Caterpillar Stock the Best Cyclical Play? Overall, it does look from here like the CAT stock price is a bit too cheap. Even assuming the ~$12 EPS this year is benefiting from cyclical help, recent cost cuts look sustainable at this point. Tax reform has helped net profit as well. It's not hard to model 'mid-cycle' EPS of $9-10, with a mid-teen multiple suggesting the CAT stock price should be in the $140 range, up ~10% or so from current levels. The biggest issue, though, is whether Caterpillar stock is the best cyclical stock for investors who believe the sell-off has gone too far. As David Schawel pointed out on Twitter this week, cyclical stocks never have been as cheap on a relative basis as they are right now. Construction industry stocks have been hammered, and several look cheap, including homebuilders like Lennar (NYSE:LEN) and distributors like GMS (NYSE:GMS) and Beacon Roofing Supply (NASDAQ:BECN). CAT is a bit of a China play at this point - and there's no shortage of value stocks with exposure to that market. A 2.7% dividend yield does help the case for Caterpillar stock, admittedly. Cyclical risk probably isn't quite as large here. Still, there are a number of good, cheap cyclicals out there. Caterpillar stock is one of them. But I'm skeptical it's the best or necessarily the cheapest. As of this writing, Vince Martin is long shares of GMS Inc. He has no positions in any other securities mentioned. ### More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Stocks to Buy Down 20% in December * 5 Chinese Stocks to Avoid Now (But Buy Later) * 3 Big Gainers That Easily Could Be the Best Stocks to Buy Compare Brokers The post The Four Key Questions to Consider Before Buying Caterpillar Stock appeared first on InvestorPlace.
Legendary investors such as Leon Cooperman and Seth Klarman earn enormous amounts of money for themselves and their investors by doing in-depth research on small-cap stocks that big brokerage houses don’t publish. Small cap stocks -especially when they are screened well- can generate substantial outperformance versus a boring index fund. That’s why we analyze the […]
In this article I am going to calculate the intrinsic value of GMS Inc (NYSE:GMS) by estimating the company’s future cash flows and discounting them to their present value. I Read More...
GMS Inc. (GMS), a leading North American distributor of gypsum wallboard and suspended ceiling systems, announced today that Leslie H. Kratcoski has joined the Company as Vice President, Investor Relations effective December 3, 2018. Leslie will report directly to Mike Callahan, President and CEO of GMS. Ms. Kratcoski joins GMS from Snap-on Incorporated, an NYSE-listed, S&P 500 global manufacturer and marketer of professional tools and equipment, where she spent 9 years leading the investor relations program.