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

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Builders FirstSource (BLDR) closed the most recent trading day at $25.61, moving +1.99% from the previous trading session. This change outpaced the S&P 500's 0.17% gain on the day. Meanwhile, the Dow 0%, and the Nasdaq, a tech-heavy index, added 0.11%.

Heading into today, shares of the construction supply company had lost 6.27% over the past month, lagging the Retail-Wholesale sector's gain of 2.9% and the S&P 500's gain of 2.78% in that time.

Wall Street will be looking for positivity from BLDR as it approaches its next earnings report date. This is expected to be February 20, 2020. On that day, BLDR is projected to report earnings of $0.35 per share, which would represent a year-over-year decline of 23.91%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.74 billion, down 3.94% from the year-ago period.

It is also important to note the recent changes to analyst estimates for BLDR. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.52% higher. BLDR is currently a Zacks Rank #1 (Strong Buy).

Valuation is also important, so investors should note that BLDR has a Forward P/E ratio of 11.46 right now. For comparison, its industry has an average Forward P/E of 14.27, which means BLDR is trading at a discount to the group.

The Building Products - Retail industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 89, putting it in the top 35% 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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