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

·3 min read

Builders FirstSource (BLDR) closed at $65.69 in the latest trading session, marking a -0.65% move from the prior day. This change lagged the S&P 500's 0.99% gain on the day. Elsewhere, the Dow gained 0.51%, while the tech-heavy Nasdaq lost 0.38%.

Heading into today, shares of the construction supply company had gained 32.19% over the past month, outpacing the Retail-Wholesale sector's gain of 10.59% and the S&P 500's gain of 7.91% in that time.

Wall Street will be looking for positivity from Builders FirstSource as it approaches its next earnings report date. This is expected to be August 1, 2022. The company is expected to report EPS of $3, up 8.7% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $5.48 billion, down 1.76% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $12.30 per share and revenue of $21.61 billion. These totals would mark changes of +19.19% and +8.6%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for Builders FirstSource. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.26% higher within the past month. Builders FirstSource is currently sporting a Zacks Rank of #3 (Hold).

Digging into valuation, Builders FirstSource currently has a Forward P/E ratio of 5.38. Its industry sports an average Forward P/E of 9.01, 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 group has a Zacks Industry Rank of 201, putting it in the bottom 21% 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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