Sell Gypsum Supply (NYSE: GMS) for a 66% Gain in 7 Months
When I recommended building supplier Gypsum Supply & Management (NYSE: GMS) last September, the stock was trading at just 10 times 2017 estimates. It has since roared up 66% without a big bump to estimates. I still like the stock but think its current price reflects potential earnings.
Although GMS will not report its next quarter until mid-July, competitor U.S. Gypsum (NYSE: USG) will report earnings tomorrow morning before the market opens. A slowdown in new home starts due to labor shortages could cause a blip in revenue growth for the group.
Subscribers wishing to hold the stock could place a $34.50 stop loss on positions.
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