Builders FirstSource (BLDR) Flat As Market Gains: What You Should Know

In the latest trading session, Builders FirstSource (BLDR) closed at $43.42, marking no change from the previous day. This move lagged the S&P 500's daily gain of 0.47%. Elsewhere, the Dow gained 0.09%, while the tech-heavy Nasdaq added 0.5%.

Coming into today, shares of the construction supply company had gained 7.88% in the past month. In that same time, the Retail-Wholesale sector gained 4.94%, while the S&P 500 gained 3.18%.

BLDR will be looking to display strength as it nears its next earnings release, which is expected to be February 26, 2021. In that report, analysts expect BLDR to post earnings of $0.91 per share. This would mark year-over-year growth of 127.5%. Our most recent consensus estimate is calling for quarterly revenue of $2.69 billion, up 52.66% from the year-ago period.

Investors should also note any recent changes to analyst estimates for BLDR. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. The Zacks Consensus EPS estimate has moved 0.44% higher within the past month. BLDR is currently a Zacks Rank #3 (Hold).

Looking at its valuation, BLDR is holding a Forward P/E ratio of 14.8. Its industry sports an average Forward P/E of 15.12, so we one might conclude that BLDR is trading at a discount comparatively.

The Building Products - Retail industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 91, which puts it in the top 36% of all 250+ industries.

The Zacks Industry Rank includes is listed in order 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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