Pro Contractor Supply Consolidation
This curated selection of stocks represents companies positioned to benefit from the consolidation wave in the professional contractor supply industry. Our analysts have carefully selected these distributors and manufacturers following Home Depot's strategic $4.3 billion acquisition of GMS.
Top Picks from This Group
Here are a few of the assets in this group. Create an account to unlock the full list.
Builders FirstSource, Inc.
BLDR
Current price
$136.88
As a leading distributor of building materials, Builders FirstSource is a direct competitor to the newly combined GMS/SRS and could be seen as a prime...
As a leading distributor of building materials, Builders FirstSource is a direct competitor to the newly combined GMS/SRS and could be seen as a prime target in further industry consolidation.
BLUELINX HOLDINGS INC
BXC
Current price
$79.08
BlueLinx, a wholesale distributor of building products, operates in the same consolidating market and could become an attractive acquisition target fo...
BlueLinx, a wholesale distributor of building products, operates in the same consolidating market and could become an attractive acquisition target for larger players seeking to expand their distribution network.
Martin Marietta Materials, Inc.
MLM
Current price
$609.58
As a major producer of construction aggregates, Martin Marietta will be a key supplier to the larger, consolidated distributors created by deals like ...
As a major producer of construction aggregates, Martin Marietta will be a key supplier to the larger, consolidated distributors created by deals like the Home Depot-GMS acquisition.
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About This Group of Stocks
Our Expert Thinking
Home Depot's acquisition of GMS signals a major shift in the professional contractor supply market. This theme captures companies that may become acquisition targets themselves or benefit as suppliers to newly enlarged distribution giants. These stocks offer exposure to both M&A potential and the broader construction industry momentum.
What You Need to Know
This theme includes two main types of companies: building material distributors that could be acquisition targets, and manufacturers that supply essential construction products. Performance is tied to both M&A activity and the health of housing and construction markets, making it a tactical investment with cyclical elements.
Why These Stocks
These companies were selected based on their strategic positioning in the contractor supply value chain. Our analysts identified distributors similar to GMS that could attract buyers, and manufacturers likely to benefit from more streamlined ordering and enhanced relationships with larger distribution partners.
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:
+27.36%
Group Performance Snapshot
Average 12 Month Profit
On average, analysts expect assets in this group to grow 27.36% over the next year.
Stocks Rated Buy by Analysts
11 of 15 assets in this group are rated Buy by professional analysts.
Group Growth
This group averaged a 3% return last month.
Why You'll Want to Watch These Stocks
M&A Premium Potential
Building material distributors in this group could become acquisition targets themselves, potentially commanding significant premiums as larger players compete for market share in the professional contractor segment.
Industry Power Shift
Home Depot's acquisition of GMS marks a turning point in how construction materials reach contractors. These companies are positioned to benefit from the changing landscape through larger orders or potential buyouts.
Supplier Pricing Strength
As distribution consolidates, key manufacturers gain leverage through more strategic relationships with fewer, larger customers. This can lead to more stable orders and potentially improved pricing power.
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