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

GMS (GMS) closed the most recent trading day at $49.18, moving +1.65% from the previous trading session.

This story originally appeared on Zacks

GMS (GMS) closed the most recent trading day at $49.18, moving +1.65% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.85%.

- Zacks

Heading into today, shares of the company had gained 0.79% over the past month, outpacing the Retail-Wholesale sector's loss of 4.94% and lagging the S&P 500's gain of 2.85% in that time.

Wall Street will be looking for positivity from GMS as it approaches its next earnings report date. This is expected to be September 2, 2021. In that report, analysts expect GMS to post earnings of $1.30 per share. This would mark 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.

GMS's full-year Zacks Consensus Estimates are calling for earnings of $4.76 per share and revenue of $3.93 billion. These results would represent year-over-year changes of +34.46% and +19.27%, respectively.

Investors might also notice recent changes to analyst estimates for GMS. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. GMS is currently sporting a Zacks Rank of #2 (Buy).

Valuation is also important, so investors should note that GMS has a Forward P/E ratio of 10.16 right now. This valuation marks a discount compared to its industry's average Forward P/E of 16.01.

The Building Products - Retail industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 59, putting it in the top 24% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow GMS in the coming trading sessions, be sure to utilize Zacks.com.

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