Builders FirstSource (BLDR) shares rallied 12% in the last trading session to close at $124.66. 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 1.3% gain over the past four weeks.
Builders FirstSource stock is expected to have jumped amid renewed optimism around improving housing affordability in the United States. Investor sentiment improved following the recent meeting of U.S. Commerce Secretary Howard Lutnick with executives from major homebuilding companies. The meeting highlighted the Trump administration’s efforts to address housing affordability concerns through necessary incentive offerings.
This construction supply company is expected to post quarterly earnings of $1.31 per share in its upcoming report, which represents a year-over-year change of -43.3%. Revenues are expected to be $3.44 billion, down 9.9% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with 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 belongs to the Zacks Building Products - Retail industry. Another stock from the same industry, Tecnoglass (TGLS), closed the last trading session 4.9% higher at $53.73. Over the past month, TGLS has returned -4.2%.
For Tecnoglass, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.86. This represents a change of -18.1% from what the company reported a year ago. Tecnoglass currently has a Zacks Rank of #5 (Strong Sell).
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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.
