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Here's Why Builders FirstSource (BLDR) Fell More Than Broader Market
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The latest trading session saw Builders FirstSource (BLDR - Free Report) ending at $119.97, denoting a -0.14% adjustment from its last day's close. The stock fell short of the S&P 500, which registered a loss of 0.13% for the day. At the same time, the Dow lost 0.03%, and the tech-heavy Nasdaq lost 0.12%.
The construction supply company's stock has dropped by 14.53% in the past month, falling short of the Retail-Wholesale sector's loss of 7.03% and the S&P 500's loss of 5.53%.
The investment community will be paying close attention to the earnings performance of Builders FirstSource in its upcoming release. The company is slated to reveal its earnings on November 1, 2023. On that day, Builders FirstSource is projected to report earnings of $4.05 per share, which would represent a year-over-year decline of 22.12%. Simultaneously, our latest consensus estimate expects the revenue to be $4.87 billion, showing a 15.49% drop compared to the year-ago quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $13.69 per share and revenue of $17.44 billion. These totals would mark changes of -26.83% and -23.26%, respectively, from last year.
Any recent changes to analyst estimates for Builders FirstSource should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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 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, the Zacks Consensus EPS estimate has remained steady. Builders FirstSource currently has a Zacks Rank of #1 (Strong Buy).
Looking at valuation, Builders FirstSource is presently trading at a Forward P/E ratio of 8.78. For comparison, its industry has an average Forward P/E of 11.11, which means Builders FirstSource is trading at a discount to the group.
The Building Products - Retail industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 79, placing it within the top 32% of over 250 industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Here's Why Builders FirstSource (BLDR) Fell More Than Broader Market
The latest trading session saw Builders FirstSource (BLDR - Free Report) ending at $119.97, denoting a -0.14% adjustment from its last day's close. The stock fell short of the S&P 500, which registered a loss of 0.13% for the day. At the same time, the Dow lost 0.03%, and the tech-heavy Nasdaq lost 0.12%.
The construction supply company's stock has dropped by 14.53% in the past month, falling short of the Retail-Wholesale sector's loss of 7.03% and the S&P 500's loss of 5.53%.
The investment community will be paying close attention to the earnings performance of Builders FirstSource in its upcoming release. The company is slated to reveal its earnings on November 1, 2023. On that day, Builders FirstSource is projected to report earnings of $4.05 per share, which would represent a year-over-year decline of 22.12%. Simultaneously, our latest consensus estimate expects the revenue to be $4.87 billion, showing a 15.49% drop compared to the year-ago quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $13.69 per share and revenue of $17.44 billion. These totals would mark changes of -26.83% and -23.26%, respectively, from last year.
Any recent changes to analyst estimates for Builders FirstSource should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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 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, the Zacks Consensus EPS estimate has remained steady. Builders FirstSource currently has a Zacks Rank of #1 (Strong Buy).
Looking at valuation, Builders FirstSource is presently trading at a Forward P/E ratio of 8.78. For comparison, its industry has an average Forward P/E of 11.11, which means Builders FirstSource is trading at a discount to the group.
The Building Products - Retail industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 79, placing it within the top 32% of over 250 industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.