Stock Markets
GMS shares target cut, keeps Buy rating on weaker outlook
Tuesday, DA Davidson adjusted its outlook on GMS Inc . (NYSE: NYSE:), a leading North American distributor of wallboard and suspended ceilings systems, reducing the stock’s price target to $97 from $105, while still recommending a Buy rating for investors.
The revision follows GMS’s fourth-quarter earnings report last week, which showed results largely in line with expectations but presented a softer forecast for the first quarter of fiscal year 2025.
The company’s stock value has seen a decline of approximately 10% since the earnings announcement. DA Davidson’s analyst noted the current market conditions as “choppy,” with certain factors negatively influencing near-term (NT) gross margins. Despite these challenges, the analyst highlighted that the wallboard pricing environment continues to be stable and healthy.
Moreover, there is an indication of increased demand in the single-family housing sector, which is beginning to emerge more significantly. This demand is a positive sign for GMS, which specializes in products for residential and commercial construction.
In response to the updated company outlook and market conditions, DA Davidson has revised its EBITDA forecast for GMS for the fiscal year 2025 downward by 5%. The new stock price target of $97 reflects this revised forecast but the firm maintains its Buy rating, signaling confidence in the company’s long-term performance despite the short-term headwinds.
GMS Inc. has not publicly responded to the revised price target. Investors and market watchers will be keeping a close eye on the company’s performance in the upcoming quarters to see if the predicted stabilization in wallboard prices and the uptick in single-family demand will positively affect the company’s financials.
In other recent news, GMS Inc. reported record net sales of $5.5 billion for the full fiscal year 2024, with fourth-quarter net sales increasing by 8.4% to $1.4 billion. The company also posted a net income of $56.4 million and an adjusted EBITDA of $146.6 million for the same period. In anticipation of changes in end market dynamics, GMS predicts improvements in single-family construction to balance out challenges in multifamily and commercial markets in fiscal 2025.
GMS also plans to continue its growth strategy through acquisitions and initiatives like the Yard of the Future. The company has agreed to acquire Yvon supply company, expecting the transaction to enhance margins.
Despite a decline in gross margin due to steel price deflation, GMS expects wallboard pricing to remain resilient and anticipates renewed inflationary periods. These are recent developments that highlight the company’s strategic approach to navigate the complex market environment.
InvestingPro Insights
As investors weigh DA Davidson’s revised outlook on GMS Inc., real-time data and expert analysis from InvestingPro offer additional dimensions to consider. GMS’s stock is currently perceived as being in oversold territory according to the RSI metric, suggesting potential for a rebound. Moreover, the company’s liquid assets have been noted to exceed its short-term obligations, indicating a strong liquidity position that could weather short-term market volatility.
On the valuation front, GMS boasts a P/E Ratio of 11.83, with a slight adjustment in the last twelve months of 2024 to 11.52, reflecting a modest valuation relative to earnings. The company has maintained a steady revenue growth of 3.24% in the same period, which could be a sign of underlying business strength amidst market fluctuations.
Still, it is important to note that the stock has experienced significant price declines over the past week and month, with a 10.39% and 15.44% drop respectively, which may have factored into the revised price target from DA Davidson.
For investors looking for a deeper dive into GMS’s financials and future prospects, there are additional InvestingPro Tips available that could provide further guidance. For instance, analysts predict profitability for the year, and the company has a history of strong returns over the last decade. To access these insights and more, consider using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro. With a total of 11 additional tips listed on InvestingPro for GMS, investors can gain a comprehensive understanding of the company’s potential.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
By Maggie Fick and Ahmed Aboulenein
WASHINGTON (Reuters) – Members of Donald Trump’s presidential transition team are laying the groundwork for the United States to withdraw from the World Health Organization on the first day of his second term, according to a health law expert familiar with the discussions.
“I have it on good authority that he plans to withdraw, probably on Day One or very early in his administration,” said Lawrence Gostin, professor of global health at Georgetown University in Washington and director of the WHO Collaborating Center on National and Global Health (NS:) Law.
The Financial Times was first to report on the plans, citing two experts. The second expert, former White House COVID-19 response coordinator Ashish Jha, was not immediately available for comment.
The Trump transition team did not immediately respond to a Reuters request for comment.
The plan, which aligns with Trump’s longstanding criticism of the U.N. health agency, would mark a dramatic shift in U.S. global health policy and further isolate Washington from international efforts to battle pandemics.
Trump has nominated several critics of the organization to top public health positions, including Robert F. Kennedy Jr., a vaccine skeptic who is up for the post of secretary of Health and Human Services, which oversees all major U.S. health agencies including the CDC and FDA.
Trump initiated the year-long withdrawal process from the WHO in 2020 but six months later his successor, President Joe Biden, reversed the decision.
Trump has argued that the agency failed to hold China accountable for the early spread of COVID-19. He has repeatedly called the WHO a puppet of Beijing and vowed to redirect U.S. contributions to domestic health initiatives.
A WHO spokesperson declined to directly comment but referred Reuters to comments by WHO Director-General Tedros Adhanom Ghebreyesus at a press briefing on Dec. 10 in which he was asked whether he was concerned that the Trump administration would withdraw from the organization.
Tedros said at the time that the WHO needed to give the U.S. time and space for the transition. He also voiced confidence that states could finalize a pandemic agreement by May 2025.
Critics warn that a U.S. withdrawal could undermine global disease surveillance and emergency response systems.
“The U.S. would lose influence and clout in global health and China would fill the vacuum. I can’t imagine a world without a robust WHO. But U.S. withdrawal would severely weaken the agency,” Gostin said.
U.Today – MicroStrategy has made headlines again by purchasing 5,262 BTC for approximately $561 million at an average price of $106,662 per BTC. The company now holds a staggering 444,262 BTC, accumulated at a total cost of approximately $27.7 billion, with an average purchase price of $62,257 per BTC.
Despite impressive returns of 47.4% since the beginning of the quarter and 73.7% since the beginning of the year, skepticism about the company’s strategy is growing.
It is believed that to sustain its purchases, MicroStrategy raises capital through methods such as issuing convertible and corporate bonds, securing credit lines and selling shares.
This cycle appears to operate as follows: shares are sold to acquire the cryptocurrency, and the rising price per BTC increases asset value, enabling further loans, which are then reinvested in more purchases.
Some observers warn that a significant decline in Bitcoin’s price or MicroStrategy’s stock could trigger a cascade effect. A sharp fall in MSTR shares would weaken the collateral backing its loans, potentially leading to forced asset sales, including BTC.
This scenario could exert downward pressure on the broader cryptocurrency market, as the company holds 2.2% of the global Bitcoin supply now.
Thus, while some view Michael Saylor’s approach as a bold bid to cement the cryptocurrency’s role in the financial system, others see it as unsustainable. History offers a cautionary note: in 2000, MSTR shares surged to $333 before plummeting 99%, a collapse that took 24 years to recover from.
National homebuilder ranked No. 12 on inaugural list ranking companies based on trust
SCOTTSDALE, Ariz., Dec. 23, 2024 /PRNewswire/ — With a longstanding reputation for trust, national homebuilder and land developer Taylor Morrison (NYSE:) (NYSE: ™HC) has been recognized by Forbes on their inaugural list of the Most Trusted Companies in America. The homebuilder ranked No. 12 out of 300 companies across all industries.
“There are few things more powerful than trust and it’s something we strive to earn amongst all company stakeholders, from our customers to our team members, our shareholders, and our local communities,” said Taylor Morrison Chairman and CEO Sheryl Palmer. “To be included on this esteemed list in its inaugural year is especially meaningful and these awards are important reminders of the relationships we’re building across all aspects of our business.”
Fueled by hundreds of millions of data points, the Most Trusted Companies in America list combines data on a wide range of factors across four categories: employee trust, customer trust, investor trust and media sentiment. The ranking was created in partnership with research companies HundredX, Signal AI and Glassdoor.
Taylor Morrison also earned the No. 67 spot on Forbes’ inaugural America’s Best Companies list. The ranking is Forbes’ most comprehensive company ranking to date and factored in ratings for financial performance, customer and employee satisfaction, cybersecurity, sustainability, companies’ remote work policies, media coverage and more. Forbes’ America’s Best Companies list assessed more than 60 metrics across 11 primary categories to identify which organizations excel across the board. Of the more than 2,000 U.S.-based publicly traded companies that were eligible, only 300 qualified for each list.
In addition to being named among the Most Trusted and Best Companies in America by Forbes, Taylor Morrison holds several additional accolades including being named on Newsweek’s America’s Most Responsible Companies and America’s Greenest Companies lists, U.S. News & World Report’s Best Companies to Work For list, the American Opportunity (SO:) Index, America’s Most Trusted ® Home Builder for nine years, Hearthstone’s 2021 BUILDER Humanitarian Award, and inclusion on the Fortune 500 list since 2021.
About Taylor Morrison
Headquartered in Scottsdale, Arizona, Taylor Morrison is one of the nation’s leading homebuilders and developers. We serve a wide array of consumers from coast to coast, including first-time, move-up, luxury and resort lifestyle homebuyers and renters under our family of brands”including Taylor Morrison, Esplanade and Yardly. From 2016-2024, Taylor Morrison has been recognized as America’s Most Trusted ® Builder by Lifestory Research. Our long-standing commitment to sustainable operations is highlighted in our annual Sustainability and Belonging Report.
For more information about Taylor Morrison, please visit www.taylormorrison.com.
CONTACT:
media@taylormorrison.com
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