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

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Builders FirstSource (BLDR - Free Report) closed the latest trading day at $134.30, indicating a -0.14% change from the previous session's end. This change lagged the S&P 500's 0.07% gain on the day. Meanwhile, the Dow experienced a drop of 0.13%, and the technology-dominated Nasdaq saw an increase of 0.14%.

Coming into today, shares of the construction supply company had lost 8.48% in the past month. In that same time, the Retail-Wholesale sector gained 2.94%, while the S&P 500 gained 4.34%.

The upcoming earnings release of Builders FirstSource will be of great interest to investors. On that day, Builders FirstSource is projected to report earnings of $3.16 per share, which would represent a year-over-year decline of 18.77%. At the same time, our most recent consensus estimate is projecting a revenue of $4.48 billion, reflecting a 1% fall from the equivalent quarter last year.

For the full year, the Zacks Consensus Estimates project earnings of $12.93 per share and a revenue of $17.82 billion, demonstrating changes of -11.38% and +4.25%, respectively, from the preceding year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Builders FirstSource. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Builders FirstSource is currently sporting a Zacks Rank of #4 (Sell).

Looking at valuation, Builders FirstSource is presently trading at a Forward P/E ratio of 10.4. This indicates a discount in contrast to its industry's Forward P/E of 16.33.

Investors should also note that BLDR has a PEG ratio of 2.16 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Building Products - Retail industry stood at 2.26 at the close of the market yesterday.

The Building Products - Retail industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 230, this industry ranks in the bottom 9% of all industries, numbering over 250.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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