Builders FirstSource (BLDR) Advances While Market Declines: Some Information for Investors

Builders FirstSource (BLDR) closed the most recent trading day at $88.09, moving +1.72% from the previous trading session. The stock outperformed the S&P 500, which registered a daily loss of 0.61%. At the same time, the Dow lost 0.26%, and the tech-heavy Nasdaq lost 0.93%.

Heading into today, shares of the construction supply company had lost 28.18% over the past month, lagging the Retail-Wholesale sector's loss of 2.49% and the S&P 500's loss of 2.25%.

The investment community will be closely monitoring the performance of Builders FirstSource in its forthcoming earnings report. The company is forecasted to report an EPS of $0.45, showcasing a 70.2% downward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.22 billion, down 12.05% from the year-ago period.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $5.85 per share and revenue of $15 billion. These totals would mark changes of -15.09% and -1.23%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for Builders FirstSource. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, there's been a 2.63% fall in the Zacks Consensus EPS estimate. Right now, Builders FirstSource possesses a Zacks Rank of #3 (Hold).

With respect to valuation, Builders FirstSource is currently being traded at a Forward P/E ratio of 14.81. This valuation marks no noticeable deviation compared to its industry average Forward P/E of 14.81.

It is also worth noting that BLDR currently has a PEG ratio of 2.09. 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 1.33.

The Building Products - Retail industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 233, which puts it in the bottom 5% of all 250+ industries.

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.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.

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This article originally published on Zacks Investment Research (zacks.com).

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