In the latest close session, Builders FirstSource (BLDR) was up +2.6% at $111.26. The stock exceeded the S&P 500, which registered a gain of 0.62% for the day. Elsewhere, the Dow saw an upswing of 0.99%, while the tech-heavy Nasdaq appreciated by 0.65%.
Prior to today's trading, shares of the construction supply company had gained 0.91% outpaced the Retail-Wholesale sector's gain of 0.14% and the S&P 500's gain of 0.59%.
The investment community will be paying close attention to the earnings performance of Builders FirstSource in its upcoming release. The company is expected to report EPS of $1.31, down 43.29% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $3.44 billion, reflecting a 9.93% fall from the equivalent quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $7.07 per share and a revenue of $15.27 billion, indicating changes of -38.84% and 0%, respectively, from the former year.
Investors should also note any recent changes to analyst estimates for Builders FirstSource. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. Over the past month, the Zacks Consensus EPS estimate has remained steady. At present, Builders FirstSource boasts a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Builders FirstSource has a Forward P/E ratio of 17.52 right now. This expresses a premium compared to the average Forward P/E of 14.89 of its industry.
It is also worth noting that BLDR currently has a PEG ratio of 13.18. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. As of the close of trade yesterday, the Building Products - Retail industry held an average PEG ratio of 6.88.
The Building Products - Retail industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 239, finds itself in the bottom 3% echelons of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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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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