Builders FirstSource (BLDR) closed the most recent trading day at $124.86, moving -1.86% from the previous trading session. This change lagged the S&P 500's daily loss of 0.79%. Elsewhere, the Dow saw a downswing of 0.94%, while the tech-heavy Nasdaq depreciated by 0.92%.
Coming into today, shares of the construction supply company had gained 13.97% in the past month. In that same time, the Retail-Wholesale sector gained 2.47%, while the S&P 500 gained 5.22%.
The upcoming earnings release of Builders FirstSource will be of great interest to investors. The company's earnings per share (EPS) are projected to be $2.37, reflecting a 32.29% decrease from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.26 billion, down 4.45% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $8.54 per share and a revenue of $16.2 billion, demonstrating changes of -26.12% and -1.21%, respectively, from the preceding year.
Investors might also notice 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.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Builders FirstSource is currently sporting a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that Builders FirstSource has a Forward P/E ratio of 14.9 right now. This expresses a discount compared to the average Forward P/E of 18.02 of its industry.
Investors should also note that BLDR has a PEG ratio of 8.1 right now. 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 had an average PEG ratio of 8.1 as trading concluded yesterday.
The Building Products - Retail industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 8, putting it in the top 4% of all 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
