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Builders FirstSource (BLDR) Stock Falls Amid Market Uptick: What Investors Need to Know

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Builders FirstSource (BLDR - Free Report) closed at $124.15 in the latest trading session, marking a -3.71% move from the prior day. This move lagged the S&P 500's daily gain of 0.49%. Meanwhile, the Dow gained 0.38%, and the Nasdaq, a tech-heavy index, added 0.72%.

Shares of the construction supply company have depreciated by 3.22% over the course of the past month, underperforming the Retail-Wholesale sector's gain of 2.3%, and the S&P 500's gain of 2.99%.

The upcoming earnings release of Builders FirstSource will be of great interest to investors. The company is predicted to post an EPS of $1.71, indicating a 44.3% decline compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $3.89 billion, reflecting a 7.98% fall from the equivalent quarter last year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $7.1 per share and revenue of $15.22 billion, which would represent changes of -38.58% and -7.17%, respectively, from the prior year.

Any recent changes to analyst estimates for Builders FirstSource should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Currently, Builders FirstSource is carrying a Zacks Rank of #5 (Strong Sell).

In terms of valuation, Builders FirstSource is presently being traded at a Forward P/E ratio of 18.16. Its industry sports an average Forward P/E of 17.54, so one might conclude that Builders FirstSource is trading at a premium comparatively.

It is also worth noting that BLDR currently has a PEG ratio of 13.66. 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. BLDR's industry had an average PEG ratio of 7.22 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 234, placing it within the bottom 6% of over 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.

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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