For most investors, how much a stock's price changes over time is important. Not only can it impact your investment portfolio, but it can also help you compare investment results across sectors and industries.
Another factor that can influence investors is FOMO, or the fear of missing out, especially with tech giants and popular consumer-facing stocks.
What if you'd invested in Builders FirstSource (
BLDR Quick Quote BLDR - Free Report) ten years ago? It may not have been easy to hold on to BLDR for all that time, but if you did, how much would your investment be worth today? Builders FirstSource's Business In-Depth
With that in mind, let's take a look at Builders FirstSource's main business drivers.
Builders FirstSource is the largest supplier of building materials, manufactured components and construction services to professional homebuilders, sub-contractors, remodelers and consumers. The company recently completed its merger with BMC Stock Holdings, Inc.
The company operates in more than 550 locations in 40 states all over the United States. Builders FirstSource offers an integrated solution to its customers by providing manufacturing, supply and installation of a full range of structural and related building products. Its manufactured products include factory-built roof and floor trusses, wall panels and stairs, vinyl windows, custom millwork and trim, as well as engineered wood that the company designs, cuts, and assembles specifically for each home.
Following the merger with BMC Stock Holdings, Inc. on Jan 1, 2021, Builders FirstSource reorganized the structure of its internal organization. Given similar economic characteristics, categories of products, distribution methods and customers, its three operating divisions (namely East, Central, and West) are aggregated into one reportable segment.
On Jun 24, Builders FirstSource announced that it intends to acquire WTS Paradigm, LLC. WTS Paradigm is a software solutions and services provider for the building products industry. This acquisition is an important step toward investing in innovative digital solutions that will help the company provide services more efficiently. On May 24, the company announced that it will acquire Alliance Portfolio’s business for approximately $400 million. This will likely expand Builders FirstSource’s reach in Arizona and other fastest-growing areas of the country.
Putting together a successful investment portfolio takes a combination of research, patience, and a little bit of risk. For Builders FirstSource, if you bought shares a decade ago, you're likely feeling really good about your investment today.
A $1000 investment made in August 2011 would be worth $24,184.21, or a gain of 2,318.42%, as of August 5, 2021, according to our calculations. This return excludes dividends but includes price appreciation.
Compare this to the S&P 500's rally of 266.87% and gold's return of 4.81% over the same time frame.
Analysts are forecasting more upside for BLDR too.
Shares of Builders FirstSource have outperformed the industry over the past year. The company is benefiting from its focus on cost synergies, strategic acquisitions, and robust demand arising from solid housing and repair & remodeling activities. During first-quarter 2021, the company’s core organic sales increased 22% on robust demand of single-family housing, R&R and other activities. Notably, Builders FirstSource remains focused on investing in innovations and enhancing digital solutions for its customers. However, high costs and supply-related constraints may pressurize the company’s margins. This, along with competitive pressures and inclement weather conditions, are headwinds. Meanwhile, earnings estimates for 2021 have moved up over the past 60 days, depicting analysts’ optimism regarding its bottom-line growth potential.
The stock has jumped 6.84% over the past four weeks. Additionally, no earnings estimate has gone lower in the past two months, compared to 1 higher, for fiscal 2021; the consensus estimate has moved up as well.