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16 handpicked stocks

Home Depot's Pro Market Expansion

A collection of building material suppliers, distributors, and construction tech companies positioned to benefit from Home Depot's acquisition of GMS. These carefully selected stocks represent companies that could see increased activity or become potential consolidation targets in this evolving sector.

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Author avatar

Han Tan | Market Analyst

Updated today | Published at July 1

Top Picks from This Group

Here are a few of the assets in this group. Create an account to unlock the full list.

BLDR

Builders FirstSource, Inc.

BLDR

Current price

$136.88

As a major competitor, Builders FirstSource benefits from industry consolidation trends and a heightened focus on the professional market, potentially...

As a major competitor, Builders FirstSource benefits from industry consolidation trends and a heightened focus on the professional market, potentially making it an acquirer or a more valuable target.

BXC

BLUELINX HOLDINGS INC

BXC

Current price

$79.08

This wholesale distributor of building products could become a strategic acquisition target as larger players like Home Depot continue to consolidate ...

This wholesale distributor of building products could become a strategic acquisition target as larger players like Home Depot continue to consolidate the professional supply sector.

AWI

Armstrong World Industries, Inc.

AWI

Current price

$194.13

A leading manufacturer of ceilings, Armstrong World Industries stands to benefit from the expanded distribution and sales channels into commercial pro...

A leading manufacturer of ceilings, Armstrong World Industries stands to benefit from the expanded distribution and sales channels into commercial projects created by the GMS acquisition.

About This Group of Stocks

1

Our Expert Thinking

Home Depot's $5.5 billion acquisition of GMS is reshaping the professional building materials landscape. This strategic move highlights the growing value of specialized distributors and manufacturers serving contractors. Companies in this group are positioned to benefit from this industry shift, either as acquisition targets or by gaining access to enhanced distribution channels.

2

What You Need to Know

This collection represents a tactical play on consolidation within the construction materials sector. The stocks span the entire value chain - from raw material producers to distributors to specialty product manufacturers. These companies stand to benefit from the increased focus on scale, logistics, and comprehensive product offerings in the professional contractor market.

3

Why These Stocks

Each company in this group has been selected based on its strategic position within the building materials ecosystem. Some may become acquisition targets as competitors respond to Home Depot's move, while others will benefit from improved distribution channels and increased demand for their products through larger, more efficient networks.

12 Month Growth Potential

Use the growth calculator to see how much investing in these assets could return over one year.

If you invested across these assets:

in 12 months it could be worth:

$1,000.00

+28.26%

Group Performance Snapshot

28.26%

Average 12 Month Profit

On average, analysts expect assets in this group to grow 28.26% over the next year.

13 of 15

Stocks Rated Buy by Analysts

13 of 15 assets in this group are rated Buy by professional analysts.

0.5%

Group Growth

This group averaged a 0.5% return last month.

Source: Analyst sentiment is provided by Refinitiv Ltd, a global leader in financial market data with over 40k business clients. Refinitiv Ltd is an independent third party to Nemo. This is not advice.

Why You'll Want to Watch These Stocks

🔄

Consolidation Wave Coming

Home Depot's major acquisition signals more deals ahead. These companies could be the next targets or benefit from the industry reshuffling, potentially driving up valuations across the sector.

🏗️

Pro Market Gold Rush

The professional contractor market is where the big money flows. These companies are positioned at crucial points in this lucrative supply chain, with Home Depot's move highlighting just how valuable this segment has become.

🔗

The Distribution Advantage

Better distribution channels mean more sales. Companies in this group will gain access to enhanced logistics networks and expanded customer bases, potentially boosting their growth without additional capital investment.

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