GMS (NYSE:GMS) underwent analysis by 4 analysts in the last quarter, revealing a spectrum of viewpoints from bullish to bearish.
The table below offers a condensed view of their recent ratings, showcasing the changing sentiments over the past 30 days and comparing them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 0 | 1 | 3 | 0 | 0 |
| Last 30D | 0 | 0 | 1 | 0 | 0 |
| 1M Ago | 0 | 0 | 0 | 0 | 0 |
| 2M Ago | 0 | 1 | 0 | 0 | 0 |
| 3M Ago | 0 | 0 | 2 | 0 | 0 |
Analysts have recently evaluated GMS and provided 12-month price targets. The average target is $94.5, accompanied by a high estimate of $115.00 and a low estimate of $80.00. This upward trend is apparent, with the current average reflecting a 5.88% increase from the previous average price target of $89.25.
Analyzing Analyst Ratings: A Detailed Breakdown
An in-depth analysis of recent analyst actions unveils how financial experts perceive GMS. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.
| Analyst | Analyst Firm | Action Taken | Rating | Current Price Target | Prior Price Target |
|---|---|---|---|---|---|
| Jeffrey Stevenson | Loop Capital | Raises | Hold | $93.00 | $85.00 |
| David Manthey | Baird | Raises | Outperform | $115.00 | $96.00 |
| Matthew Bouley | Barclays | Lowers | Equal-Weight | $80.00 | $81.00 |
| Keith Hughes | Truist Securities | Lowers | Hold | $90.00 | $95.00 |
Key Insights:
- Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to GMS. This insight gives a snapshot of analysts' perspectives on the current state of the company.
- Rating: Offering a comprehensive view, analysts assess stocks qualitatively, spanning from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of GMS compared to the broader market.
- Price Targets: Analysts predict movements in price targets, offering estimates for GMS's future value. Examining the current and prior targets offers insights into analysts' evolving expectations.
For valuable insights into GMS's market performance, consider these analyst evaluations alongside crucial financial indicators. Stay well-informed and make prudent decisions using our Ratings Table.
Stay up to date on GMS analyst ratings.
Delving into GMS's Background
GMS Inc is a distributor of specialty building products including wallboard, suspended ceiling systems, ceilings, steel framing, and other complementary building products. The company serves its products to commercial new construction, commercial repair and remodel, residential new construction, and residential repair and remodel (R&R). Its geographical segment is Central, Midwest, New York, Northeast, Southern, Southeast, Southwest, Western and Canada, and Ames. The company generates maximum revenue from Wallboard products.
GMS's Economic Impact: An Analysis
Market Capitalization Analysis: Below industry benchmarks, the company's market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.
Revenue Growth: GMS displayed positive results in 3 months. As of 31 July, 2024, the company achieved a solid revenue growth rate of approximately 2.76%. This indicates a notable increase in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Industrials sector.
Net Margin: GMS's net margin lags behind industry averages, suggesting challenges in maintaining strong profitability. With a net margin of 3.95%, the company may face hurdles in effective cost management.
Return on Equity (ROE): GMS's ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of 3.91%, the company may encounter challenges in delivering satisfactory returns for shareholders.
Return on Assets (ROA): GMS's ROA lags behind industry averages, suggesting challenges in maximizing returns from its assets. With an ROA of 1.5%, the company may face hurdles in achieving optimal financial performance.
Debt Management: GMS's debt-to-equity ratio is below the industry average. With a ratio of 1.14, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.
Understanding the Relevance of Analyst Ratings
Analysts work in banking and financial systems and typically specialize in reporting for stocks or defined sectors. Analysts may attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish "analyst ratings" for stocks. Analysts typically rate each stock once per quarter.
Analysts may supplement their ratings with predictions for metrics like growth estimates, earnings, and revenue, offering investors a more comprehensive outlook. However, investors should be mindful that analysts, like any human, can have subjective perspectives influencing their forecasts.
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This article was generated by Benzinga's automated content engine and reviewed by an editor.
