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Here's Why Builders FirstSource (BLDR) Fell More Than Broader Market
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Builders FirstSource (BLDR - Free Report) closed the latest trading day at $128.99, indicating a -1.42% change from the previous session's end. The stock fell short of the S&P 500, which registered a loss of 1.12% for the day. Elsewhere, the Dow lost 0.31%, while the tech-heavy Nasdaq lost 2.04%.
Coming into today, shares of the construction supply company had lost 7.05% in the past month. In that same time, the Retail-Wholesale sector lost 5.39%, while the S&P 500 lost 2.91%.
Market participants will be closely following the financial results of Builders FirstSource in its upcoming release. The company is expected to report EPS of $1.36, down 48.68% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.69 billion, down 5.15% from the year-ago period.
BLDR's full-year Zacks Consensus Estimates are calling for earnings of $9.55 per share and revenue of $16.92 billion. These results would represent year-over-year changes of -17.39% and +3.16%, respectively.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Builders FirstSource. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 2.71% lower. Right now, Builders FirstSource possesses a Zacks Rank of #4 (Sell).
Investors should also note Builders FirstSource's current valuation metrics, including its Forward P/E ratio of 13.7. For comparison, its industry has an average Forward P/E of 15.09, which means Builders FirstSource is trading at a discount to the group.
Investors should also note that BLDR has a PEG ratio of 1.6 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Building Products - Retail stocks are, on average, holding a PEG ratio of 2.63 based on yesterday's closing prices.
The Building Products - Retail industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 226, this industry ranks in the bottom 10% of all industries, numbering over 250.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Here's Why Builders FirstSource (BLDR) Fell More Than Broader Market
Builders FirstSource (BLDR - Free Report) closed the latest trading day at $128.99, indicating a -1.42% change from the previous session's end. The stock fell short of the S&P 500, which registered a loss of 1.12% for the day. Elsewhere, the Dow lost 0.31%, while the tech-heavy Nasdaq lost 2.04%.
Coming into today, shares of the construction supply company had lost 7.05% in the past month. In that same time, the Retail-Wholesale sector lost 5.39%, while the S&P 500 lost 2.91%.
Market participants will be closely following the financial results of Builders FirstSource in its upcoming release. The company is expected to report EPS of $1.36, down 48.68% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.69 billion, down 5.15% from the year-ago period.
BLDR's full-year Zacks Consensus Estimates are calling for earnings of $9.55 per share and revenue of $16.92 billion. These results would represent year-over-year changes of -17.39% and +3.16%, respectively.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Builders FirstSource. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 2.71% lower. Right now, Builders FirstSource possesses a Zacks Rank of #4 (Sell).
Investors should also note Builders FirstSource's current valuation metrics, including its Forward P/E ratio of 13.7. For comparison, its industry has an average Forward P/E of 15.09, which means Builders FirstSource is trading at a discount to the group.
Investors should also note that BLDR has a PEG ratio of 1.6 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Building Products - Retail stocks are, on average, holding a PEG ratio of 2.63 based on yesterday's closing prices.
The Building Products - Retail industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 226, this industry ranks in the bottom 10% of all industries, numbering over 250.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.