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Here's Why Builders FirstSource (BLDR) Gained But Lagged the Market Today
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In the latest trading session, Builders FirstSource (BLDR - Free Report) closed at $163.43, marking a +0.32% move from the previous day. The stock's change was less than the S&P 500's daily gain of 0.72%. Meanwhile, the Dow experienced a rise of 0.3%, and the technology-dominated Nasdaq saw an increase of 1.35%.
Heading into today, shares of the construction supply company had gained 11.85% over the past month, outpacing the Retail-Wholesale sector's gain of 6.17% and the S&P 500's gain of 1.02% in that time.
Market participants will be closely following the financial results of Builders FirstSource in its upcoming release. The company plans to announce its earnings on February 20, 2025. The company's upcoming EPS is projected at $2.13, signifying a 40% drop compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $3.91 billion, indicating a 5.74% downward movement from the same quarter last year.
It is also important to note the recent changes to analyst estimates for Builders FirstSource. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 5.06% lower. Builders FirstSource is currently sporting a Zacks Rank of #5 (Strong Sell).
In terms of valuation, Builders FirstSource is currently trading at a Forward P/E ratio of 13.99. This valuation marks a discount compared to its industry's average Forward P/E of 14.43.
Also, we should mention that BLDR has a PEG ratio of 0.9. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. BLDR's industry had an average PEG ratio of 2.21 as of yesterday's close.
The Building Products - Retail industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 208, positioning it in the bottom 18% of all 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) Gained But Lagged the Market Today
In the latest trading session, Builders FirstSource (BLDR - Free Report) closed at $163.43, marking a +0.32% move from the previous day. The stock's change was less than the S&P 500's daily gain of 0.72%. Meanwhile, the Dow experienced a rise of 0.3%, and the technology-dominated Nasdaq saw an increase of 1.35%.
Heading into today, shares of the construction supply company had gained 11.85% over the past month, outpacing the Retail-Wholesale sector's gain of 6.17% and the S&P 500's gain of 1.02% in that time.
Market participants will be closely following the financial results of Builders FirstSource in its upcoming release. The company plans to announce its earnings on February 20, 2025. The company's upcoming EPS is projected at $2.13, signifying a 40% drop compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $3.91 billion, indicating a 5.74% downward movement from the same quarter last year.
It is also important to note the recent changes to analyst estimates for Builders FirstSource. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 5.06% lower. Builders FirstSource is currently sporting a Zacks Rank of #5 (Strong Sell).
In terms of valuation, Builders FirstSource is currently trading at a Forward P/E ratio of 13.99. This valuation marks a discount compared to its industry's average Forward P/E of 14.43.
Also, we should mention that BLDR has a PEG ratio of 0.9. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. BLDR's industry had an average PEG ratio of 2.21 as of yesterday's close.
The Building Products - Retail industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 208, positioning it in the bottom 18% of all 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.