Builders FirstSource (BLDR) ended the recent trading session at $126.38, demonstrating a +1.22% change from the preceding day's closing price. The stock outpaced the S&P 500's daily loss of 0.53%. Elsewhere, the Dow saw a downswing of 0.09%, while the tech-heavy Nasdaq depreciated by 1%.
The construction supply company's stock has climbed by 21.01% in the past month, exceeding the Retail-Wholesale sector's gain of 5.07% and the S&P 500's gain of 2.06%.
Investors will be eagerly watching for the performance of Builders FirstSource in its upcoming earnings disclosure. The company is forecasted to report an EPS of $1.31, showcasing a 43.29% downward movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $3.44 billion, down 9.93% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $7.07 per share and revenue of $15.27 billion, indicating changes of -38.84% and 0%, respectively, compared to the previous year.
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. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% 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).
In terms of valuation, Builders FirstSource is currently trading at a Forward P/E ratio of 20.18. For comparison, its industry has an average Forward P/E of 15.22, which means Builders FirstSource is trading at a premium to the group.
It's also important to note that BLDR currently trades at a PEG ratio of 15.17. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Building Products - Retail industry had an average PEG ratio of 7.87 as trading concluded yesterday.
The Building Products - Retail industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 204, finds itself in the bottom 17% echelons 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.
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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