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Builders FirstSource (BLDR) Stock Sinks As Market Gains: Here's Why
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In the latest close session, Builders FirstSource (BLDR - Free Report) was down 1.02% at $77.77. This move lagged the S&P 500's daily gain of 0.5%. On the other hand, the Dow registered a gain of 0.7%, and the technology-centric Nasdaq increased by 0.31%.
Shares of the construction supply company witnessed a gain of 6.78% over the previous month, beating the performance of the Retail-Wholesale sector with its loss of 4.78%, and the S&P 500's loss of 0.23%.
The investment community will be closely monitoring the performance of Builders FirstSource in its forthcoming earnings report. The company is predicted to post an EPS of $1.32, indicating a 44.54% decline compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $3.93 billion, indicating a 7.22% decline compared to the corresponding quarter of the prior year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $4.26 per share and revenue of $14.87 billion, indicating changes of -38.17% and -2.08%, respectively, compared to the previous year.
Investors should also take note of any recent adjustments 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 business operations and its ability to generate profits.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
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 last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Builders FirstSource is currently sporting a Zacks Rank of #5 (Strong Sell).
From a valuation perspective, Builders FirstSource is currently exchanging hands at a Forward P/E ratio of 18.42. This denotes a premium relative to the industry average Forward P/E of 16.7.
Also, we should mention that BLDR has a PEG ratio of 1.88. 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 1.31 as of yesterday's close.
The Building Products - Retail industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 244, this industry ranks in the bottom 1% of all industries, numbering over 250.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Builders FirstSource (BLDR) Stock Sinks As Market Gains: Here's Why
In the latest close session, Builders FirstSource (BLDR - Free Report) was down 1.02% at $77.77. This move lagged the S&P 500's daily gain of 0.5%. On the other hand, the Dow registered a gain of 0.7%, and the technology-centric Nasdaq increased by 0.31%.
Shares of the construction supply company witnessed a gain of 6.78% over the previous month, beating the performance of the Retail-Wholesale sector with its loss of 4.78%, and the S&P 500's loss of 0.23%.
The investment community will be closely monitoring the performance of Builders FirstSource in its forthcoming earnings report. The company is predicted to post an EPS of $1.32, indicating a 44.54% decline compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $3.93 billion, indicating a 7.22% decline compared to the corresponding quarter of the prior year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $4.26 per share and revenue of $14.87 billion, indicating changes of -38.17% and -2.08%, respectively, compared to the previous year.
Investors should also take note of any recent adjustments 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 business operations and its ability to generate profits.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
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 last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Builders FirstSource is currently sporting a Zacks Rank of #5 (Strong Sell).
From a valuation perspective, Builders FirstSource is currently exchanging hands at a Forward P/E ratio of 18.42. This denotes a premium relative to the industry average Forward P/E of 16.7.
Also, we should mention that BLDR has a PEG ratio of 1.88. 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 1.31 as of yesterday's close.
The Building Products - Retail industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 244, this industry ranks in the bottom 1% of all industries, numbering over 250.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.