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Why Builders FirstSource (BLDR) Outpaced the Stock Market Today

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The latest trading session saw Builders FirstSource (BLDR - Free Report) ending at $155.72, denoting a +1.16% adjustment from its last day's close. The stock outperformed the S&P 500, which registered a daily gain of 0.67%. On the other hand, the Dow registered a gain of 0.38%, and the technology-centric Nasdaq increased by 0.98%.

Coming into today, shares of the construction supply company had gained 9.98% in the past month. In that same time, the Retail-Wholesale sector gained 7.15%, while the S&P 500 gained 2.07%.

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 February 20, 2025. The company is predicted to post an EPS of $2.13, indicating a 40% decline compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $3.91 billion, indicating a 5.74% decline compared to the corresponding quarter of the prior year.

Investors should also note any recent changes to analyst estimates for Builders FirstSource. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 2.71% lower. Currently, Builders FirstSource is carrying a Zacks Rank of #5 (Strong Sell).

Looking at valuation, Builders FirstSource is presently trading at a Forward P/E ratio of 13.22. This indicates a discount in contrast to its industry's Forward P/E of 14.64.

Meanwhile, BLDR's PEG ratio is currently 0.85. 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. BLDR's industry had an average PEG ratio of 2.18 as of yesterday's close.

The Building Products - Retail industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 211, placing it within the bottom 16% 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.


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