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15 handpicked stocks

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.

Author avatar

Han Tan | Market Analyst

Published on July 1

Your Basket's Financial Footprint

Market capitalisation breakdown for the 'Pro Contractor Supply Consolidation' basket, highlighting overall size and concentration by large-cap constituents.

Key Takeaways for Investors:
  • Large-cap dominance generally means lower volatility and steadier returns, tending to track broad market moves.
  • Suitable as a core holding to provide stable sector exposure, not as a speculative, high-risk position.
  • Expect steady long-term appreciation rather than explosive short-term gains; growth likely incremental and cyclical.
Total Market Cap
  • BLDR: $13.89B

  • BXC: $574.88M

  • MLM: $38.12B

  • Other

About This Group of Stocks

1

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.

2

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.

3

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.

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.

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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.

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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.

Get the full story on this Basket. Read our detailed article on its risks and potential.

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