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Builders FirstSource (BLDR) Gains But Lags Market: What You Should Know

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Builders FirstSource (BLDR - Free Report) closed at $58.86 in the latest trading session, marking a +0.29% move from the prior day. This change lagged the S&P 500's 0.36% gain on the day. At the same time, the Dow added 0.23%, and the tech-heavy Nasdaq lost 0.1%.

Heading into today, shares of the construction supply company had lost 13.26% over the past month, lagging the Retail-Wholesale sector's loss of 2.34% and the S&P 500's loss of 6.59% in that time.

Investors will be hoping for strength from Builders FirstSource as it approaches its next earnings release. In that report, analysts expect Builders FirstSource to post earnings of $2.91 per share. This would mark year-over-year growth of 5.43%. Our most recent consensus estimate is calling for quarterly revenue of $5.48 billion, down 1.76% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $12.26 per share and revenue of $21.69 billion, which would represent changes of +18.8% and +9.04%, respectively, from the prior year.

Any recent changes to analyst estimates for Builders FirstSource should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.26% higher. Builders FirstSource is currently sporting a Zacks Rank of #2 (Buy).

Investors should also note Builders FirstSource's current valuation metrics, including its Forward P/E ratio of 4.79. Its industry sports an average Forward P/E of 8.09, so we one might conclude that Builders FirstSource is trading at a discount comparatively.

The Building Products - Retail industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 69, which puts it in the top 28% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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