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Builders FirstSource (BLDR) Exceeds Market Returns: Some Facts to Consider
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In the latest market close, Builders FirstSource (BLDR - Free Report) reached $202.77, with a +1.51% movement compared to the previous day. The stock's change was more than the S&P 500's daily gain of 0.11%. Meanwhile, the Dow experienced a drop of 0.11%, and the technology-dominated Nasdaq saw an increase of 0.23%.
Heading into today, shares of the construction supply company had gained 0.73% over the past month, outpacing the Retail-Wholesale sector's gain of 0.04% and lagging the S&P 500's gain of 1.5% in that time.
The upcoming earnings release of Builders FirstSource will be of great interest to investors. In that report, analysts expect Builders FirstSource to post earnings of $2.41 per share. This would mark a year-over-year decline of 18.58%. Simultaneously, our latest consensus estimate expects the revenue to be $3.8 billion, showing a 2.21% drop compared to the year-ago quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $14.02 per share and revenue of $18.05 billion. These totals would mark changes of -3.91% and +5.55%, respectively, from last year.
Any recent changes to analyst estimates for Builders FirstSource should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 1.24% increase. Builders FirstSource is currently sporting a Zacks Rank of #2 (Buy).
In terms of valuation, Builders FirstSource is currently trading at a Forward P/E ratio of 14.25. This represents a discount compared to its industry's average Forward P/E of 14.33.
Also, we should mention that BLDR has a PEG ratio of 1.2. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Building Products - Retail stocks are, on average, holding a PEG ratio of 1.81 based on yesterday's closing prices.
The Building Products - Retail industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 66, putting it in the top 27% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Builders FirstSource (BLDR) Exceeds Market Returns: Some Facts to Consider
In the latest market close, Builders FirstSource (BLDR - Free Report) reached $202.77, with a +1.51% movement compared to the previous day. The stock's change was more than the S&P 500's daily gain of 0.11%. Meanwhile, the Dow experienced a drop of 0.11%, and the technology-dominated Nasdaq saw an increase of 0.23%.
Heading into today, shares of the construction supply company had gained 0.73% over the past month, outpacing the Retail-Wholesale sector's gain of 0.04% and lagging the S&P 500's gain of 1.5% in that time.
The upcoming earnings release of Builders FirstSource will be of great interest to investors. In that report, analysts expect Builders FirstSource to post earnings of $2.41 per share. This would mark a year-over-year decline of 18.58%. Simultaneously, our latest consensus estimate expects the revenue to be $3.8 billion, showing a 2.21% drop compared to the year-ago quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $14.02 per share and revenue of $18.05 billion. These totals would mark changes of -3.91% and +5.55%, respectively, from last year.
Any recent changes to analyst estimates for Builders FirstSource should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 1.24% increase. Builders FirstSource is currently sporting a Zacks Rank of #2 (Buy).
In terms of valuation, Builders FirstSource is currently trading at a Forward P/E ratio of 14.25. This represents a discount compared to its industry's average Forward P/E of 14.33.
Also, we should mention that BLDR has a PEG ratio of 1.2. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Building Products - Retail stocks are, on average, holding a PEG ratio of 1.81 based on yesterday's closing prices.
The Building Products - Retail industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 66, putting it in the top 27% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.