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Builders FirstSource (BLDR) Stock Drops Despite Market Gains: Important Facts to Note

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The latest trading session saw Builders FirstSource (BLDR - Free Report) ending at $193.86, denoting a -0.2% adjustment from its last day's close. This move lagged the S&P 500's daily gain of 0.42%. Meanwhile, the Dow gained 0.04%, and the Nasdaq, a tech-heavy index, added 0.38%.

The the stock of construction supply company has risen by 11.64% in the past month, leading the Retail-Wholesale sector's gain of 6.34% and the S&P 500's gain of 2.06%.

Investors will be eagerly watching for the performance of Builders FirstSource in its upcoming earnings disclosure. The company's upcoming EPS is projected at $3.10, signifying a 26.89% drop compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $4.47 billion, indicating a 1.51% downward movement from the same quarter last year.

BLDR's full-year Zacks Consensus Estimates are calling for earnings of $11.68 per share and revenue of $16.82 billion. These results would represent year-over-year changes of -19.95% and -1.6%, respectively.

Investors should also take note of any recent adjustments to analyst estimates for Builders FirstSource. These recent revisions tend to reflect the evolving nature of short-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.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1.97% lower. Builders FirstSource presently features a Zacks Rank of #3 (Hold).

Digging into valuation, Builders FirstSource currently has a Forward P/E ratio of 16.63. This signifies a discount in comparison to the average Forward P/E of 19.66 for its industry.

It is also worth noting that BLDR currently has a PEG ratio of 11.47. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Building Products - Retail industry held an average PEG ratio of 3.34.

The Building Products - Retail industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 204, this industry ranks in the bottom 20% of all industries, numbering over 250.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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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