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Builders FirstSource (BLDR) Stock Sinks As Market Gains: What You Should Know

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In the latest trading session, Builders FirstSource (BLDR - Free Report) closed at $24.65, marking a -0.6% move from the previous day. This change lagged the S&P 500's 0.73% gain on the day. Meanwhile, the Dow gained 0.51%, and the Nasdaq, a tech-heavy index, added 1.34%.

Prior to today's trading, shares of the construction supply company had lost 2.42% over the past month. This has lagged the Retail-Wholesale sector's gain of 0.31% and the S&P 500's of 0% in that time.

Investors will be hoping for strength from BLDR as it approaches its next earnings release, which is expected to be February 20, 2020. The company is expected to report EPS of $0.34, down 26.09% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.74 billion, down 3.94% from the year-ago period.

Any recent changes to analyst estimates for BLDR should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. The Zacks Consensus EPS estimate remained stagnant within the past month. BLDR currently has a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that BLDR has a Forward P/E ratio of 11.37 right now. Its industry sports an average Forward P/E of 13.98, so we one might conclude that BLDR is trading at a discount comparatively.

The Building Products - Retail industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 189, which puts it in the bottom 26% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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