Builders FirstSource (BLDR) shares rallied 8.8% in the last trading session to close at $126.91. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 10.5% gain over the past four weeks.
Shares of this Texas-based supplier of building materials, manufactured components and construction services are likely to have trended upward due to favorable long-term fundamentals backing up its prospects. The company’s consistent focus on investing in innovations and enhancing digital solutions to address affordability challenges, alongside ensuring productivity savings through operational efficiency amid macro risks, is likely to have been encouraging.
This construction supply company is expected to post quarterly earnings of $2.37 per share in its upcoming report, which represents a year-over-year change of -32.3%. Revenues are expected to be $4.26 billion, down 4.5% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Builders FirstSource, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on BLDR going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Builders FirstSource is a member of the Zacks Building Products - Retail industry. One other stock in the same industry, Tecnoglass (TGLS), finished the last trading session 1.8% lower at $75.97. TGLS has returned -8.7% over the past month.
For Tecnoglass, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.97. This represents a change of +12.8% from what the company reported a year ago. Tecnoglass currently has a Zacks Rank of #1 (Strong Buy).
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
