Builders FirstSource, Inc. (BLDR Quick QuoteBLDR - Free Report) shares rallied 6% in the last trading session to close at $52. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 4.5% gain over the past four weeks.

Shares of Builders FirstSource jumped after the company posted better-than-expected first quarter results. Its adjusted earnings per share of $1.10 topped the Zacks Consensus Estimate of 81 cents. Net sales rose 133.6% year over year to $4.2 billion and also beat the Zacks Consensus Estimate of $3.8 million. The robust result reflects solid contribution from BMC and strong organic growth. Moreover, the company raised its revenue and adjusted EBITDA projections for 2021.

Price and Consensus

This construction supply company is expected to post quarterly earnings of $0.81 per share in its upcoming report, which represents a year-over-year change of +138.2%. Revenues are expected to be $3.79 billion, up 112.2% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For Builders FirstSource, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on BLDR going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank 3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>