Builders FirstSource (BLDR) Gains But Lags Market: What You Should Know

Builders FirstSource (BLDR) closed at $11.54 in the latest trading session, marking a +0.52% move from the prior day. This change lagged the S&P 500's 2.28% gain on the day. Elsewhere, the Dow gained 2.24%, while the tech-heavy Nasdaq added 1.72%.

Heading into today, shares of the construction supply company had lost 55.23% over the past month, lagging the Retail-Wholesale sector's loss of 10% and the S&P 500's loss of 16.08% in that time.

BLDR will be looking to display strength as it nears its next earnings release. On that day, BLDR is projected to report earnings of $0.29 per share, which would represent a year-over-year decline of 14.71%. Our most recent consensus estimate is calling for quarterly revenue of $1.77 billion, up 8.3% from the year-ago period.

BLDR's full-year Zacks Consensus Estimates are calling for earnings of $1.96 per share and revenue of $7.54 billion. These results would represent year-over-year changes of -6.22% and +3.53%, respectively.

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. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 13.37% lower within the past month. BLDR is currently a Zacks Rank #3 (Hold).

Digging into valuation, BLDR currently has a Forward P/E ratio of 5.85. This valuation marks a discount compared to its industry's average Forward P/E of 8.07.

The Building Products - Retail industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 101, which puts it in the top 40% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow BLDR in the coming trading sessions, be sure to utilize

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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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