GMS Inc. (GMS): A Bull Case Theory

We came across a bullish thesis on GMS Inc. on Stock Region Research’s Substack by Stock Region. In this article, we will summarize the bulls’ thesis on GMS. GMS Inc.'s share was trading at $98.54 as of June 26^th. GMS’s trailing and forward P/E were 33.75 and 16.05 respectively according to Yahoo Finance.

GMS Inc. saw a dramatic surge of 30.85% in its stock price following a takeover bid from QXO at $95.20 per share, marking a significant premium over the company’s recent 60-day average. The intrigue deepened as Home Depot also expressed interest, setting the stage for a potential bidding war. This sudden burst of acquisition activity highlights the market’s recognition of GMS’s underlying value, particularly given its solid Q4 revenue performance of $1.33 billion.

The strong fundamentals and industry positioning of GMS make it a highly attractive asset, and the competing interest from two well-capitalized players suggests that more upside could be on the horizon. For investors seeking opportunistic, short-term trades, GMS now represents a high-volatility, high-potential play. The market will be watching closely for further developments, especially if the bidding intensifies, which could drive the stock even higher. Analysts and traders alike are eyeing $106.50 as a technical breakout level, hinting at further gains if momentum continues.

Whether QXO successfully closes the deal or Home Depot counters with a higher offer, the underlying message is clear: there is significant untapped value in GMS, and strategic acquirers are willing to pay up for it. With takeover premiums in play and competitive dynamics emerging, GMS could become one of the more exciting M&A stories to watch, offering a compelling near-term opportunity for both equity and event-driven investors.

Previously we covered a bullish thesis on Martin Marietta Materials, Inc. (MLM) by Stock Analysis Compilation in June 2025, which highlighted its pricing power, inflation resilience, and infrastructure-driven demand. The company's stock price has depreciated approximately by 2.1% since our coverage. This is because macro pressures persisted. The thesis still stands as MLM’s fundamentals remain strong. Stock Region shares a similar view on GMS Inc. but emphasizes M&A-driven upside.

GMS isn't on our list of the 30 Most Popular Stocks Among Hedge Funds. While we acknowledge the risk and potential of GMS as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.

Disclosure: None. This article was originally published at Insider Monkey.