GMS Inc. is facing negative revenue trends and slashed earnings estimates, with a bearish outlook.

From Nasdaq: 2025-04-11 06:00:00

GMS, based in Tucker, Georgia, distributes wallboard, ceilings, insulation, and construction products in the US and Canada. The company offers ceiling solutions for commercial buildings and steel framing products for interior walls, along with ancillary products like tools and lumber. However, revenue trends are negative and earnings estimates have been slashed.

The Zacks Rank #5 (Strong Sell) stock, GMS, is part of the Zacks Building Products – Retail industry group, ranking in the bottom 6% of industries. Earnings misses have been consistent, with a recent fourth-quarter miss of 33.8%. Analysts have slashed estimates by 38.5% for the current quarter, expecting negative growth of -40.5%.

GMS stock is in a downtrend, trading below moving averages and experiencing a “death cross.” The technical outlook is bearish, with shares falling over 15% this year. A deteriorating fundamental and technical backdrop, combined with negative earnings revisions, suggest the stock is unlikely to see new highs soon.

GMS is facing challenges in the US construction market, with affordability concerns and inflationary pressures. Potential investors may want to avoid the stock, while short or hedge strategies could be considered. Bulls should steer clear until major improvements are seen in the company’s situation.



Read more at Nasdaq: Bear of the Day: GMS Inc. (GMS)