Builders FirstSource (BLDR) closed at $115.96 in the latest trading session, marking a -2.42% move from the prior day. Meanwhile, the Dow lost 0.25%, and the Nasdaq, a tech-heavy index, added 0.31%.
Coming into today, shares of the construction supply company had gained 6.58% in the past month. In that same time, the Retail-Wholesale sector gained 2.13%, while the S&P 500 gained 5.05%.
Investors will be eagerly watching for the performance of Builders FirstSource in its upcoming earnings disclosure. The company is predicted to post an EPS of $2.37, indicating a 32.29% decline compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $4.26 billion, indicating a 4.45% decline compared to the corresponding quarter of the prior year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $8.54 per share and a revenue of $16.2 billion, signifying shifts of -26.12% and -1.21%, respectively, from the last year.
Investors should also take note of any recent adjustments to analyst estimates for Builders FirstSource. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, there's been a 0.02% rise in the Zacks Consensus EPS estimate. Currently, Builders FirstSource is carrying a Zacks Rank of #4 (Sell).
Valuation is also important, so investors should note that Builders FirstSource has a Forward P/E ratio of 13.92 right now. For comparison, its industry has an average Forward P/E of 16.95, which means Builders FirstSource is trading at a discount to the group.
We can also see that BLDR currently has a PEG ratio of 7.57. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Building Products - Retail industry currently had an average PEG ratio of 7.57 as of yesterday's close.
The Building Products - Retail industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 96, finds itself in the top 40% echelons of all 250+ industries.
The Zacks Industry Rank is ordered 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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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.
