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Builders FirstSource (BLDR) Beats Stock Market Upswing: What Investors Need to Know

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In the latest close session, Builders FirstSource (BLDR - Free Report) was up +1.69% at $104.63. The stock outperformed the S&P 500, which registered a daily gain of 0.19%. On the other hand, the Dow registered a gain of 0.66%, and the technology-centric Nasdaq decreased by 0.03%.

The stock of construction supply company has fallen by 7.31% in the past month, lagging the Retail-Wholesale sector's loss of 1.45% and the S&P 500's gain of 0.54%.

Investors will be eagerly watching for the performance of Builders FirstSource in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $1.31, reflecting a 43.29% decrease from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.44 billion, down 9.93% from the year-ago period.

BLDR's full-year Zacks Consensus Estimates are calling for earnings of $7.07 per share and revenue of $15.27 billion. These results would represent year-over-year changes of -38.84% and 0%, respectively.

Investors should also note any recent changes to analyst estimates for Builders FirstSource. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Right now, Builders FirstSource possesses a Zacks Rank of #2 (Buy).

Looking at valuation, Builders FirstSource is presently trading at a Forward P/E ratio of 16.63. Its industry sports an average Forward P/E of 15.03, so one might conclude that Builders FirstSource is trading at a premium comparatively.

Meanwhile, BLDR's PEG ratio is currently 12.5. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Building Products - Retail industry had an average PEG ratio of 6.53.

The Building Products - Retail industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 230, placing it within the bottom 7% of over 250 industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


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