In the latest trading session, Builders FirstSource (BLDR) closed at $127.24, marking a +1.91% move from the previous day. This change outpaced the S&P 500's 0.07% loss on the day. At the same time, the Dow lost 0.37%, and the tech-heavy Nasdaq gained 0.03%.
Prior to today's trading, shares of the construction supply company had gained 10.53% outpaced the Retail-Wholesale sector's gain of 1.87% and the S&P 500's gain of 3.94%.
Analysts and investors alike will be keeping a close eye on the performance of Builders FirstSource in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $2.37, marking a 32.29% fall compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $4.26 billion, indicating a 4.45% downward movement from the same quarter last year.
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.
Any recent changes to analyst estimates for Builders FirstSource should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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. Builders FirstSource is holding a Zacks Rank of #2 (Buy) right now.
Digging into valuation, Builders FirstSource currently has a Forward P/E ratio of 14.63. This signifies a discount in comparison to the average Forward P/E of 17.8 for its industry.
We can additionally observe that BLDR currently boasts a PEG ratio of 7.95. 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. As of the close of trade yesterday, the Building Products - Retail industry held an average PEG ratio of 7.95.
The Building Products - Retail industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 7, placing it within the top 3% of over 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming 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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