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Why the Market Dipped But Builders FirstSource (BLDR) Gained Today

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The most recent trading session ended with Builders FirstSource (BLDR - Free Report) standing at $194.52, reflecting a +0.32% shift from the previouse trading day's closing. This move outpaced the S&P 500's daily loss of 0.29%. Elsewhere, the Dow saw a downswing of 0.25%, while the tech-heavy Nasdaq depreciated by 0.31%.

Shares of the construction supply company witnessed a gain of 18.12% over the previous month, beating the performance of the Retail-Wholesale sector with its gain of 4.15% and the S&P 500's gain of 1.57%.

Analysts and investors alike will be keeping a close eye on the performance of Builders FirstSource in its upcoming earnings disclosure. The company is expected to report EPS of $3.10, down 26.89% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $4.47 billion, showing a 1.51% drop compared to the year-ago quarter.

For the full year, the Zacks Consensus Estimates project earnings of $11.68 per share and a revenue of $16.82 billion, demonstrating changes of -19.95% and -1.6%, respectively, from the preceding year.

Investors should also pay attention to any latest changes in 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.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.79% decrease. Builders FirstSource is currently sporting a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Builders FirstSource has a Forward P/E ratio of 16.6 right now. Its industry sports an average Forward P/E of 19.52, so one might conclude that Builders FirstSource is trading at a discount comparatively.

One should further note that BLDR currently holds a PEG ratio of 11.45. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Building Products - Retail industry had an average PEG ratio of 3.25 as trading concluded yesterday.

The Building Products - Retail industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 150, which puts it in the bottom 41% of all 250+ industries.

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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