Builders FirstSource (BLDR) ended the recent trading session at $65.79, demonstrating a +2.51% change from the preceding day's closing price. The stock's performance was ahead of the S&P 500's daily loss of 0.38%. Elsewhere, the Dow saw a downswing of 0.51%, while the tech-heavy Nasdaq depreciated by 0.29%.
Shares of the construction supply company have depreciated by 11.49% over the course of the past month, underperforming the Retail-Wholesale sector's loss of 6.14%, and the S&P 500's gain of 2.08%.
Investors will be eagerly watching for the performance of Builders FirstSource in its upcoming earnings disclosure. On that day, Builders FirstSource is projected to report earnings of $1.14 per share, which would represent a year-over-year decline of 39.36%. At the same time, our most recent consensus estimate is projecting a revenue of $3.8 billion, reflecting a 3.62% fall from the equivalent quarter last year.
BLDR's full-year Zacks Consensus Estimates are calling for earnings of $3.15 per share and revenue of $14.32 billion. These results would represent year-over-year changes of -54.28% and -5.71%, respectively.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Builders FirstSource. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health 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. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Right now, Builders FirstSource possesses a Zacks Rank of #5 (Strong Sell).
In terms of valuation, Builders FirstSource is currently trading at a Forward P/E ratio of 20.37. For comparison, its industry has an average Forward P/E of 19.88, which means Builders FirstSource is trading at a premium to the group.
We can also see that BLDR currently has a PEG ratio of 2.08. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Building Products - Retail stocks are, on average, holding a PEG ratio of 2.08 based on yesterday's closing prices.
The Building Products - Retail industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 239, which puts it in the bottom 3% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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Builders FirstSource, Inc. (BLDR): Free Stock Analysis Report
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