We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Builders FirstSource (BLDR) Laps the Stock Market: Here's Why
Read MoreHide Full Article
In the latest market close, Builders FirstSource (BLDR - Free Report) reached $204.13, with a +1.93% movement compared to the previous day. The stock's performance was ahead of the S&P 500's daily gain of 1.03%. Meanwhile, the Dow gained 0.34%, and the Nasdaq, a tech-heavy index, added 1.51%.
Prior to today's trading, shares of the construction supply company had gained 10.7% over the past month. This has outpaced the Retail-Wholesale sector's gain of 3.93% and the S&P 500's gain of 3.21% in that time.
The investment community will be closely monitoring the performance of Builders FirstSource in its forthcoming earnings report. The company's upcoming EPS is projected at $2.44, signifying a 17.57% drop compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.82 billion, down 1.76% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $13.61 per share and a revenue of $18.05 billion, representing changes of -6.72% and +5.55%, respectively, from the prior year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Builders FirstSource. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 5.09% higher. At present, Builders FirstSource boasts a Zacks Rank of #2 (Buy).
Looking at valuation, Builders FirstSource is presently trading at a Forward P/E ratio of 14.72. This denotes a premium relative to the industry's average Forward P/E of 13.53.
We can additionally observe that BLDR currently boasts a PEG ratio of 1.24. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Building Products - Retail industry held an average PEG ratio of 1.77.
The Building Products - Retail industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 164, placing it within the bottom 35% of over 250 industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Builders FirstSource (BLDR) Laps the Stock Market: Here's Why
In the latest market close, Builders FirstSource (BLDR - Free Report) reached $204.13, with a +1.93% movement compared to the previous day. The stock's performance was ahead of the S&P 500's daily gain of 1.03%. Meanwhile, the Dow gained 0.34%, and the Nasdaq, a tech-heavy index, added 1.51%.
Prior to today's trading, shares of the construction supply company had gained 10.7% over the past month. This has outpaced the Retail-Wholesale sector's gain of 3.93% and the S&P 500's gain of 3.21% in that time.
The investment community will be closely monitoring the performance of Builders FirstSource in its forthcoming earnings report. The company's upcoming EPS is projected at $2.44, signifying a 17.57% drop compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.82 billion, down 1.76% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $13.61 per share and a revenue of $18.05 billion, representing changes of -6.72% and +5.55%, respectively, from the prior year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Builders FirstSource. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 5.09% higher. At present, Builders FirstSource boasts a Zacks Rank of #2 (Buy).
Looking at valuation, Builders FirstSource is presently trading at a Forward P/E ratio of 14.72. This denotes a premium relative to the industry's average Forward P/E of 13.53.
We can additionally observe that BLDR currently boasts a PEG ratio of 1.24. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Building Products - Retail industry held an average PEG ratio of 1.77.
The Building Products - Retail industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 164, placing it within the bottom 35% of over 250 industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.