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Builders FirstSource (BLDR) Suffers a Larger Drop Than the General Market: Key Insights
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In the latest close session, Builders FirstSource (BLDR - Free Report) was down 2.81% at $59.16. This change lagged the S&P 500's daily loss of 0.76%. At the same time, the Dow lost 0.68%, and the tech-heavy Nasdaq lost 1.13%.
The construction supply company's stock has dropped by 12.24% in the past month, falling short of the Retail-Wholesale sector's loss of 3.45% and the S&P 500's gain of 1.26%.
Market participants will be closely following the financial results of Builders FirstSource in its upcoming release. The company's earnings per share (EPS) are projected to be $1.16, reflecting a 38.3% decrease from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $3.8 billion, down 3.62% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $3.19 per share and revenue of $14.32 billion, which would represent changes of -53.7% and -5.71%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Builders FirstSource. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 1.18% upward. Builders FirstSource is holding a Zacks Rank of #5 (Strong Sell) right now.
Valuation is also important, so investors should note that Builders FirstSource has a Forward P/E ratio of 19.1 right now. This denotes a discount relative to the industry average Forward P/E of 19.24.
Investors should also note that BLDR has a PEG ratio of 1.95 right now. 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. By the end of yesterday's trading, the Building Products - Retail industry had an average PEG ratio of 1.95.
The Building Products - Retail industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 228, which puts it in the bottom 8% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
View the Zacks #1 Rank List
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Builders FirstSource (BLDR) Suffers a Larger Drop Than the General Market: Key Insights
In the latest close session, Builders FirstSource (BLDR - Free Report) was down 2.81% at $59.16. This change lagged the S&P 500's daily loss of 0.76%. At the same time, the Dow lost 0.68%, and the tech-heavy Nasdaq lost 1.13%.
The construction supply company's stock has dropped by 12.24% in the past month, falling short of the Retail-Wholesale sector's loss of 3.45% and the S&P 500's gain of 1.26%.
Market participants will be closely following the financial results of Builders FirstSource in its upcoming release. The company's earnings per share (EPS) are projected to be $1.16, reflecting a 38.3% decrease from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $3.8 billion, down 3.62% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $3.19 per share and revenue of $14.32 billion, which would represent changes of -53.7% and -5.71%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Builders FirstSource. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 1.18% upward. Builders FirstSource is holding a Zacks Rank of #5 (Strong Sell) right now.
Valuation is also important, so investors should note that Builders FirstSource has a Forward P/E ratio of 19.1 right now. This denotes a discount relative to the industry average Forward P/E of 19.24.
Investors should also note that BLDR has a PEG ratio of 1.95 right now. 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. By the end of yesterday's trading, the Building Products - Retail industry had an average PEG ratio of 1.95.
The Building Products - Retail industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 228, which puts it in the bottom 8% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.