Builders FirstSource (BLDR) closed at $73.64 in the latest trading session, marking a -1.79% move from the prior day. The stock's change was more than the S&P 500's daily loss of 2.65%. Meanwhile, the Dow experienced a drop of 1.35%, and the technology-dominated Nasdaq saw a decrease of 4.18%.
Shares of the construction supply company have depreciated by 5.58% over the course of the past month, outperforming the Retail-Wholesale sector's loss of 5.69%, and lagging the S&P 500's gain of 5.47%.
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 $1.32, marking a 44.54% fall compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $3.93 billion, showing a 7.22% drop compared to the year-ago quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $4.26 per share and revenue of $14.87 billion, indicating changes of -38.17% and -2.08%, respectively, compared to the previous year.
Any recent changes to analyst estimates for Builders FirstSource should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Builders FirstSource currently has a Zacks Rank of #5 (Strong Sell).
Valuation is also important, so investors should note that Builders FirstSource has a Forward P/E ratio of 17.58 right now. This indicates a premium in contrast to its industry's Forward P/E of 16.7.
Investors should also note that BLDR has a PEG ratio of 1.8 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Building Products - Retail industry stood at 1.26 at the close of the market yesterday.
The Building Products - Retail industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 243, putting it in the bottom 1% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
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
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