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Builders FirstSource (BLDR) Gains As Market Dips: What You Should Know

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In the latest trading session, Builders FirstSource (BLDR - Free Report) closed at $121.84, marking a +0.68% move from the previous day. This change outpaced the S&P 500's 0.23% loss on the day. Meanwhile, the Dow lost 0.31%, and the Nasdaq, a tech-heavy index, lost 0.09%.

Heading into today, shares of the construction supply company had lost 8.9% over the past month, lagging the Retail-Wholesale sector's loss of 2.81% and the S&P 500's loss of 1.43% in that time.

Builders FirstSource will be looking to display strength as it nears its next earnings release. On that day, Builders FirstSource is projected to report earnings of $4.05 per share, which would represent a year-over-year decline of 22.12%. Our most recent consensus estimate is calling for quarterly revenue of $4.87 billion, down 15.49% from the year-ago period.

BLDR's full-year Zacks Consensus Estimates are calling for earnings of $13.69 per share and revenue of $17.44 billion. These results would represent year-over-year changes of -26.83% and -23.26%, respectively.

Investors should also note any recent changes to analyst estimates for Builders FirstSource. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. The Zacks Consensus EPS estimate has moved 3.87% higher within the past month. Builders FirstSource currently has a Zacks Rank of #1 (Strong Buy).

Investors should also note Builders FirstSource's current valuation metrics, including its Forward P/E ratio of 8.84. For comparison, its industry has an average Forward P/E of 11.18, which means Builders FirstSource is trading at a discount to the group.

The Building Products - Retail industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 58, which puts it in the top 24% 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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