Shares of building materials distributor GMS (NYSE:GMS) jumped 12.8% in the morning session after the company reported strong first quarter 2025 (fiscal Q4) results which beat Wall Street's sales, operating income, and earnings per share estimates.
GMS Inc. (NYSE: GMS) announced Q4 fiscal 2025 results above analyst expectations with adjusted EPS of $1.29 and net sales of $1.33 billion, despite a decline in end-market conditions.
Building materials distributor GMS (NYSE:GMS) reported Q1 CY2025 results topping the market’s revenue expectations, but sales fell by 5.6% year on year to $1.33 billion. Its non-GAAP profit of $1.29 per share was 15.9% above analysts’ consensus estimates.
The Russell 2000 (^RUT) is packed with potential breakout stocks, thanks to its focus on smaller companies with high growth potential.
However, smaller size also means these businesses often lack the resilience and financial flexibility of large-cap firms, making careful selection crucial.
When Wall Street turns bearish on a stock, it’s worth paying attention.
These calls stand out because analysts rarely issue grim ratings on companies for fear their firms will lose out in other business lines such as M&A advisory.
Value stocks typically trade at discounts to the broader market, offering patient investors the opportunity to buy businesses when they’re out of favor.
The key risk, however, is that these stocks are usually cheap for a reason – five cents for a piece of fruit may seem like a great deal until you find out it’s rotten.
A company that generates cash isn’t automatically a winner.
Some businesses stockpile cash but fail to reinvest wisely, limiting their ability to expand.
While profitability is essential, it doesn’t guarantee long-term success.
Some companies that rest on their margins will lose ground as competition intensifies - as Jeff Bezos said, "Your margin is my opportunity".
GMS’s stock price has taken a beating over the past six months, shedding 23.8% of its value and falling to $68.61 per share. This might have investors contemplating their next move.
Small-cap stocks can be incredibly lucrative investments because their lack of analyst coverage leads to frequent mispricings.
However, these businesses (and their stock prices) often stay small because their subscale operations make it harder to expand their competitive moats.
The past year hasn't been kind to the stocks featured in this article.
Each has tumbled to their lowest points in 12 months, leaving investors to decide whether they're witnessing fire sales or falling knives.
Shares of building materials distributor GMS (NYSE:GMS) fell 11.6% in the morning session after the company reported weak third-quarter (fiscal 2025) results: Revenue missed, and EBITDA didn't live up to Wall Street's expectations either. The company recorded a 6.7% drop in organic net sales, thanks to sluggish demand in residential and commercial construction, plus lower steel prices.
Despite these challenges, the company managed to keep overall net sales flat year over year, helped by recent acquisitions and strength in ceilings product sales.
Still, this was a weaker quarter.
Building materials distributor GMS (NYSE:GMS) fell short of the market’s revenue expectations in Q4 CY2024, with sales flat year on year at $1.26 billion. Its non-GAAP profit of $0.92 per share was 34.1% below analysts’ consensus estimates.
