Builders FirstSource (BLDR) ended the recent trading session at $131.03, demonstrating a -1.69% change from the preceding day's closing price. This change lagged the S&P 500's 0.14% gain on the day. On the other hand, the Dow registered a gain of 0.2%, and the technology-centric Nasdaq increased by 0.27%.
The construction supply company's stock has climbed by 19.76% in the past month, exceeding the Retail-Wholesale sector's gain of 2.13% and the S&P 500's gain of 3.97%.
The investment community will be paying close attention to the earnings performance of Builders FirstSource in its upcoming release. The company is slated to reveal its earnings on July 31, 2025. It is anticipated that the company will report an EPS of $2.33, marking a 33.43% fall compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $4.23 billion, indicating a 5.09% decrease compared to the same quarter of the previous year.
BLDR's full-year Zacks Consensus Estimates are calling for earnings of $8.32 per share and revenue of $16.11 billion. These results would represent year-over-year changes of -28.03% and -1.79%, respectively.
Investors should also take note of any recent adjustments to analyst estimates for Builders FirstSource. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. As of now, Builders FirstSource holds a Zacks Rank of #3 (Hold).
Digging into valuation, Builders FirstSource currently has a Forward P/E ratio of 16.01. This signifies a discount in comparison to the average Forward P/E of 17.51 for its industry.
Also, we should mention that BLDR has a PEG ratio of 8.7. 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 industry currently had an average PEG ratio of 8.7 as of yesterday's close.
The Building Products - Retail industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 92, putting it in the top 38% of all 250+ industries.
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.
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Builders FirstSource, Inc. (BLDR): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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