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Builders FirstSource (BLDR) Stock Slides as Market Rises: Facts to Know Before You Trade

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The most recent trading session ended with Builders FirstSource (BLDR - Free Report) standing at $165.78, reflecting a -0.24% shift from the previouse trading day's closing. This change lagged the S&P 500's 0.61% gain on the day. Meanwhile, the Dow experienced a rise of 0.3%, and the technology-dominated Nasdaq saw an increase of 1.28%.

Shares of the construction supply company have appreciated by 11.66% over the course of the past month, outperforming the Retail-Wholesale sector's gain of 2.32% and the S&P 500's gain of 2.08%.

Analysts and investors alike will be keeping a close eye on the performance of Builders FirstSource in its upcoming earnings disclosure. The company is predicted to post an EPS of $2.19, indicating a 38.31% decline compared to the equivalent quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $3.91 billion, showing a 5.74% drop compared to the year-ago quarter.

Investors should also pay attention to any latest changes in analyst estimates for Builders FirstSource. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 3.18% lower. Builders FirstSource currently has a Zacks Rank of #5 (Strong Sell).

Digging into valuation, Builders FirstSource currently has a Forward P/E ratio of 13.99. This indicates a discount in contrast to its industry's Forward P/E of 14.3.

One should further note that BLDR currently holds a PEG ratio of 0.9. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Building Products - Retail industry currently had an average PEG ratio of 2.57 as of yesterday's close.

The Building Products - Retail industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 193, putting it in the bottom 24% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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.


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