Builders FirstSource (BLDR) ended the recent trading session at $115.23, demonstrating a -1.59% change from the preceding day's closing price. This move lagged the S&P 500's daily loss of 0.13%. Elsewhere, the Dow saw an upswing of 0.11%, while the tech-heavy Nasdaq depreciated by 0.72%.
Prior to today's trading, shares of the construction supply company had gained 13.8% outpaced the Retail-Wholesale sector's gain of 4.04% and the S&P 500's gain of 0.78%.
Market participants will be closely following the financial results of Builders FirstSource in its upcoming release. The company plans to announce its earnings on February 17, 2026. On that day, Builders FirstSource is projected to report earnings of $1.31 per share, which would represent a year-over-year decline of 43.29%. In the meantime, our current consensus estimate forecasts the revenue to be $3.44 billion, indicating a 9.93% decline compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates project earnings of $7.07 per share and a revenue of $15.27 billion, demonstrating changes of -38.84% and 0%, respectively, from the preceding year.
It is also important to note the recent changes to analyst estimates for Builders FirstSource. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming 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.
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. The Zacks Consensus EPS estimate remained stagnant within the past month. As of now, Builders FirstSource holds a Zacks Rank of #3 (Hold).
In the context of valuation, Builders FirstSource is at present trading with a Forward P/E ratio of 18.92. For comparison, its industry has an average Forward P/E of 15.95, which means Builders FirstSource is trading at a premium to the group.
Also, we should mention that BLDR has a PEG ratio of 14.23. 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. As the market closed yesterday, the Building Products - Retail industry was having an average PEG ratio of 7.39.
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 is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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