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16 handpicked stocks

Building Materials M&A Wave: 18 Stocks to Watch 2025

Lowe's is acquiring Foundation Building Materials for $8.8 billion, a strategic move to dominate the professional contractor market. This acquisition highlights a broader industry consolidation, creating investment opportunities among other specialized building material suppliers and distributors.

Author avatar

Han Tan | Market Analyst

Published on August 21

About This Group of Stocks

1

Our Expert Thinking

Lowe's massive $8.8 billion acquisition of Foundation Building Materials signals a major shift in the construction supplies industry. This strategic move highlights how major retailers are aggressively expanding into the professional contractor market, creating a ripple effect that could benefit other specialized building material companies through potential acquisitions and increased market valuations.

2

What You Need to Know

This group focuses on specialized building material suppliers and distributors with strong regional networks or unique product offerings. These companies serve the professional construction market and could become attractive acquisition targets as industry consolidation accelerates. The theme represents a tactical opportunity tied to corporate M&A trends and construction market cycles.

3

Why These Stocks

These stocks were handpicked by professional analysts based on their potential to benefit from ongoing industry consolidation. Each company possesses characteristics that make them attractive in the current M&A environment - whether through strong market positions, specialized products, or strategic locations that larger players might want to acquire.

Why You'll Want to Watch These Stocks

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Acquisition Targets in Focus

With Lowe's making an $8.8 billion move, these specialized building suppliers could be next on the acquisition radar. Industry consolidation often creates a domino effect of deals.

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Professional Market Boom

The race to capture the lucrative professional contractor market is heating up. These companies are perfectly positioned to benefit from this strategic shift in the industry.

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Hidden Value Unlocked

M&A activity often reveals the true value of specialized companies with strong regional networks. These stocks could see significant revaluations as consolidation accelerates.

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