Builders FirstSource (BLDR) Registers a Bigger Fall Than the Market: Important Facts to Note

The latest trading session saw Builders FirstSource (BLDR) ending at $210.54, denoting a -0.27% adjustment from its last day's close. The stock fell short of the S&P 500, which registered a loss of 0.14% for the day. Elsewhere, the Dow saw a downswing of 0.77%, while the tech-heavy Nasdaq appreciated by 0.17%.

Shares of the construction supply company have appreciated by 12.08% over the course of the past month, outperforming the Retail-Wholesale sector's gain of 5.09% and the S&P 500's gain of 5.34%.

Analysts and investors alike will be keeping a close eye on the performance of Builders FirstSource in its upcoming earnings disclosure. In that report, analysts expect Builders FirstSource to post earnings of $2.41 per share. This would mark a year-over-year decline of 18.58%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.8 billion, down 2.21% from the year-ago period.

For the full year, the Zacks Consensus Estimates project earnings of $14.02 per share and a revenue of $18.05 billion, demonstrating changes of -3.91% and +5.55%, respectively, from the preceding year.

Investors should also pay attention to any latest changes in analyst estimates for Builders FirstSource. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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. The Zacks Consensus EPS estimate has moved 8.27% higher within the past month. At present, Builders FirstSource boasts a Zacks Rank of #2 (Buy).

From a valuation perspective, Builders FirstSource is currently exchanging hands at a Forward P/E ratio of 15.06. This expresses a premium compared to the average Forward P/E of 14.73 of its industry.

We can also see that BLDR currently has a PEG ratio of 1.27. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. BLDR's industry had an average PEG ratio of 1.93 as of yesterday's close.

The Building Products - Retail industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 95, positioning it in the top 38% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

Ensure to harness to stay updated with all these stock-shifting metrics, among others, in the next 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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