Builders FirstSource Declines 7.60%, Sets Weekly Loser Record Amid Analyst Projections of 14.28% Upside

Builders FirstSource (BLDR) experienced a 7.60% decline, marking the largest drop in its sector. Analysts project a 14.28% upside with a price target average of $140.74. GuruFocus estimates indicate a 15.6% potential upside based on the GF Value model. The consensus among 20 brokerage firms rates BLDR at 2.1, suggesting an "Outperform" status.

Builders FirstSource (BLDR), a leading building materials manufacturer and supplier, is set to release its Q2 2025 earnings report on July 31. Analysts anticipate a notable decline in earnings per share (EPS), with expectations indicating a 33.4% drop to $2.33 per share compared to the year-ago quarter [1]. This decline is attributed to a challenging housing market environment, particularly in single-family housing starts, which have shown a significant decrease [1].

For the full year, analysts predict an EPS of $8.32, a 28% decrease from fiscal 2024. However, there is a positive outlook for the future, with EPS expected to rise 18.2% year-over-year (YoY) to $9.83 in fiscal 2026. Despite these short-term challenges, the long-term prospects for Builders FirstSource remain promising due to an underbuilt housing market and potential merger and acquisition (M&A) activity [1].

BLDR stock has underperformed both the S&P 500 Index and the Industrial Select Sector SPDR Fund over the past 52 weeks, with shares down by 23.8%. The stock's current price is $126.00, but analysts maintain a reasonably bullish outlook, with an overall "Moderate Buy" rating and an average price target of $140.84. This indicates a potential upside of 11.8% from the current levels [3].

Analysts' consensus on BLDR stock is largely positive, with 12 out of 19 analysts advising a "Strong Buy" rating, two suggesting a "Moderate Buy," and five giving a "Hold" rating. The highest price target is $223.00, while the lowest is $118.00, reflecting a wide range of opinions among analysts [3].

The upcoming earnings report will provide crucial insights into the company's performance and the market's expectations. Investors and financial professionals should closely monitor the earnings call and subsequent analyst reactions to gauge the potential impact on BLDR's stock price.

References:
[1] https://www.ainvest.com/news/builders-firstsource-q2-earnings-preview-expectations-analyst-consensus-2507/
[2] https://www.gurufocus.com/news/2987384/builders-firstsource-bldr-downgraded-amid-intensifying-competition-bldr-stock-news
[3] https://www.marketbeat.com/stocks/NYSE/BLDR/forecast/