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Builders FirstSource (BLDR) Dips More Than Broader Markets: What You Should Know

·2 min read

Builders FirstSource (BLDR) closed at $56.31 in the latest trading session, marking a -1.47% move from the prior day. This move lagged the S&P 500's daily loss of 1.13%. Elsewhere, the Dow lost 1.01%, while the tech-heavy Nasdaq lost 0.14%.

Coming into today, shares of the construction supply company had lost 11.78% in the past month. In that same time, the Retail-Wholesale sector lost 5.97%, while the S&P 500 lost 7.59%.

Investors will be hoping for strength from Builders FirstSource as it approaches its next earnings release. The company is expected to report EPS of $3.42, up 0.88% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $5.18 billion, down 5.91% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $15.86 per share and revenue of $21.91 billion, which would represent changes of +53.68% and +10.13%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for Builders FirstSource. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

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 has moved 3.35% higher within the past month. Builders FirstSource is currently sporting a Zacks Rank of #3 (Hold).

Looking at its valuation, Builders FirstSource is holding a Forward P/E ratio of 3.6. This valuation marks a discount compared to its industry's average Forward P/E of 8.27.

The Building Products - Retail industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 71, which puts it in the top 29% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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