The latest trading session saw Builders FirstSource (BLDR) ending at $120.90, denoting a +0.8% adjustment from its last day's close. This change lagged the S&P 500's 1.81% gain on the day. Elsewhere, the Dow gained 1.56%, while the tech-heavy Nasdaq added 2.06%.
The construction supply company's shares have seen a decrease of 2.33% over the last month, surpassing the Retail-Wholesale sector's loss of 5.27% and the S&P 500's loss of 6.14%.
The investment community will be closely monitoring the performance of Builders FirstSource in its forthcoming earnings report. The company is scheduled to release its earnings on May 1, 2025. In that report, analysts expect Builders FirstSource to post earnings of $1.35 per share. This would mark a year-over-year decline of 49.06%. At the same time, our most recent consensus estimate is projecting a revenue of $3.69 billion, reflecting a 5.3% fall from the equivalent quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $9.52 per share and a revenue of $16.85 billion, indicating changes of -17.65% and +2.72%, respectively, from the former year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Builders FirstSource. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming 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.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.3% decrease. At present, Builders FirstSource boasts a Zacks Rank of #4 (Sell).
From a valuation perspective, Builders FirstSource is currently exchanging hands at a Forward P/E ratio of 12.6. This represents a discount compared to its industry's average Forward P/E of 14.59.
Also, we should mention that BLDR has a PEG ratio of 1.47. 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. Building Products - Retail stocks are, on average, holding a PEG ratio of 2.54 based on yesterday's closing prices.
The Building Products - Retail industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 232, placing it within the bottom 7% of over 250 industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Builders FirstSource, Inc. (BLDR): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
