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Builders FirstSource (BLDR) Laps the Stock Market: Here's Why

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Builders FirstSource (BLDR - Free Report) ended the recent trading session at $134.72, demonstrating a +2.97% change from the preceding day's closing price. The stock outperformed the S&P 500, which registered a daily gain of 0.78%. Meanwhile, the Dow experienced a rise of 1.14%, and the technology-dominated Nasdaq saw an increase of 0.61%.

Shares of the construction supply company witnessed a gain of 10.09% over the previous month, beating the performance of the Retail-Wholesale sector with its gain of 5.49%, and the S&P 500's gain of 5.88%.

The investment community will be closely monitoring the performance of Builders FirstSource in its forthcoming earnings report. The company is scheduled to release its earnings on July 31, 2025. On that day, Builders FirstSource is projected to report earnings of $2.33 per share, which would represent a year-over-year decline of 33.43%. Alongside, our most recent consensus estimate is anticipating revenue of $4.23 billion, indicating a 5.09% downward movement from the same quarter last year.

BLDR's full-year Zacks Consensus Estimates are calling for earnings of $8.28 per share and revenue of $16.11 billion. These results would represent year-over-year changes of -28.37% and -1.79%, respectively.

Investors might also notice recent changes to analyst estimates for Builders FirstSource. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 2.96% lower. Currently, Builders FirstSource is carrying a Zacks Rank of #3 (Hold).

In terms of valuation, Builders FirstSource is presently being traded at a Forward P/E ratio of 15.8. This signifies a discount in comparison to the average Forward P/E of 17.5 for its industry.

One should further note that BLDR currently holds a PEG ratio of 11.88. 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 11.88 as of yesterday's close.

The Building Products - Retail industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 93, finds itself in the top 38% echelons of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow BLDR in the coming trading sessions, be sure to utilize Zacks.com.


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