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Builders FirstSource (BLDR) Suffers a Larger Drop Than the General Market: Key Insights
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Builders FirstSource (BLDR - Free Report) closed at $77.33 in the latest trading session, marking a -4.05% move from the prior day. The stock trailed the S&P 500, which registered a daily loss of 0.37%. At the same time, the Dow added 0.29%, and the tech-heavy Nasdaq lost 1.33%.
The construction supply company's stock has climbed by 8.69% in the past month, exceeding the Retail-Wholesale sector's loss of 4.65% and the S&P 500's gain of 2.02%.
The upcoming earnings release of Builders FirstSource will be of great interest to investors. The company's earnings per share (EPS) are projected to be $1.32, reflecting a 44.54% decrease from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $3.93 billion, reflecting a 7.22% fall from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $4.26 per share and a revenue of $14.87 billion, demonstrating changes of -38.17% and -2.08%, respectively, from the preceding year.
Any recent changes to analyst estimates for Builders FirstSource should also be noted by investors. 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 exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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, there's been no change in the Zacks Consensus EPS estimate. Right now, Builders FirstSource possesses a Zacks Rank of #5 (Strong Sell).
In terms of valuation, Builders FirstSource is presently being traded at a Forward P/E ratio of 18.9. This expresses a premium compared to the average Forward P/E of 16.82 of its industry.
One should further note that BLDR currently holds a PEG ratio of 1.93. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Building Products - Retail stocks are, on average, holding a PEG ratio of 1.35 based on yesterday's closing prices.
The Building Products - Retail industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 235, this industry ranks in the bottom 4% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
View the Zacks #1 Rank List
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Builders FirstSource (BLDR) Suffers a Larger Drop Than the General Market: Key Insights
Builders FirstSource (BLDR - Free Report) closed at $77.33 in the latest trading session, marking a -4.05% move from the prior day. The stock trailed the S&P 500, which registered a daily loss of 0.37%. At the same time, the Dow added 0.29%, and the tech-heavy Nasdaq lost 1.33%.
The construction supply company's stock has climbed by 8.69% in the past month, exceeding the Retail-Wholesale sector's loss of 4.65% and the S&P 500's gain of 2.02%.
The upcoming earnings release of Builders FirstSource will be of great interest to investors. The company's earnings per share (EPS) are projected to be $1.32, reflecting a 44.54% decrease from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $3.93 billion, reflecting a 7.22% fall from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $4.26 per share and a revenue of $14.87 billion, demonstrating changes of -38.17% and -2.08%, respectively, from the preceding year.
Any recent changes to analyst estimates for Builders FirstSource should also be noted by investors. 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 exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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, there's been no change in the Zacks Consensus EPS estimate. Right now, Builders FirstSource possesses a Zacks Rank of #5 (Strong Sell).
In terms of valuation, Builders FirstSource is presently being traded at a Forward P/E ratio of 18.9. This expresses a premium compared to the average Forward P/E of 16.82 of its industry.
One should further note that BLDR currently holds a PEG ratio of 1.93. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Building Products - Retail stocks are, on average, holding a PEG ratio of 1.35 based on yesterday's closing prices.
The Building Products - Retail industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 235, this industry ranks in the bottom 4% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.