In the latest trading session, Builders FirstSource (BLDR) closed at $63.11, marking a +0.96% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.45%. Meanwhile, the Dow lost 0.67%, and the Nasdaq, a tech-heavy index, lost 0.05%.
Heading into today, shares of the construction supply company had gained 13.45% over the past month, outpacing the Retail-Wholesale sector's loss of 0.6% and the S&P 500's loss of 1.89% in that time.
Investors will be hoping for strength from Builders FirstSource as it approaches its next earnings release, which is expected to be August 1, 2022. In that report, analysts expect Builders FirstSource to post earnings of $2.91 per share. This would mark year-over-year growth of 5.43%. Meanwhile, our latest consensus estimate is calling for revenue of $5.48 billion, down 1.76% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $12.26 per share and revenue of $21.69 billion, which would represent changes of +18.8% and +9.04%, respectively, from the prior year.
Any recent changes to analyst estimates for Builders FirstSource should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.26% higher. Builders FirstSource is currently a Zacks Rank #1 (Strong Buy).
In terms of valuation, Builders FirstSource is currently trading at a Forward P/E ratio of 5.1. Its industry sports an average Forward P/E of 8.38, so we one might conclude that Builders FirstSource 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 19, which puts it in the top 8% 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.
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