Builders FirstSource (BLDR) closed at $85.21 in the latest trading session, marking a +2.55% move from the prior day. The stock's change was more than the S&P 500's daily gain of 0.62%. Elsewhere, the Dow gained 0.58%, while the tech-heavy Nasdaq added 0.83%.
Heading into today, shares of the construction supply company had lost 8.8% over the past month, lagging the Retail-Wholesale sector's loss of 0.96% and the S&P 500's gain of 0.8%.
Market participants will be closely following the financial results of Builders FirstSource in its upcoming release. It is anticipated that the company will report an EPS of $0.41, marking a 72.85% fall compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $3.17 billion, showing a 13.31% drop compared to the year-ago quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $5.68 per share and a revenue of $14.97 billion, representing changes of -17.56% and -1.44%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Builders FirstSource. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. Within the past 30 days, our consensus EPS projection remained stagnant. At present, Builders FirstSource boasts a Zacks Rank of #3 (Hold).
With respect to valuation, Builders FirstSource is currently being traded at a Forward P/E ratio of 14.62. Its industry sports an average Forward P/E of 14.62, so one might conclude that Builders FirstSource is trading at no noticeable deviation comparatively.
Meanwhile, BLDR's PEG ratio is currently 2.07. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Building Products - Retail was holding an average PEG ratio of 1.31 at yesterday's closing price.
The Building Products - Retail industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 239, this industry ranks in the bottom 3% of all industries, numbering over 250.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Builders FirstSource, Inc. (BLDR): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).