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Builders FirstSource (BLDR) Registers a Bigger Fall Than the Market: Important Facts to Note

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In the latest close session, Builders FirstSource (BLDR - Free Report) was down 1.2% at $56.85. The stock's performance was behind the S&P 500's daily loss of 0.52%. Elsewhere, the Dow lost 1.24%, while the tech-heavy Nasdaq lost 0.21%.

The construction supply company's shares have seen a decrease of 1.27% over the last month, not keeping up with the Retail-Wholesale sector's gain of 2.31% and the S&P 500's loss of 1.21%.

The upcoming earnings release of Builders FirstSource will be of great interest to investors. The company's earnings report is expected on October 29, 2026. The company is expected to report EPS of $1.13, down 39.89% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $3.79 billion, showing a 3.8% drop compared to the year-ago quarter.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $3.07 per share and revenue of $14.29 billion, indicating changes of -55.44% and -5.91%, respectively, compared to the previous year.

Investors should also take note of any recent adjustments to analyst estimates for Builders FirstSource. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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 past month, the Zacks Consensus EPS estimate has shifted 3.59% downward. Builders FirstSource is holding a Zacks Rank of #4 (Sell) right now.

With respect to valuation, Builders FirstSource is currently being traded at a Forward P/E ratio of 18.72. Its industry sports an average Forward P/E of 18.96, so one might conclude that Builders FirstSource is trading at a discount comparatively.

It's also important to note that BLDR currently trades at a PEG ratio of 1.91. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Building Products - Retail was holding an average PEG ratio of 1.91 at yesterday's closing price.

The Building Products - Retail industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 220, which puts it in the bottom 11% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

To follow BLDR in the coming trading sessions, be sure to utilize Zacks.com.

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