Why Builders FirstSource (BLDR) Dipped More Than Broader Market Today

The latest trading session saw Builders FirstSource (BLDR) ending at $114.36, denoting a -2.53% adjustment from its last day's close. This move lagged the S&P 500's daily loss of 0.27%. The construction supply company's shares have seen a decrease of 5.23% over the last month, not keeping up with the Retail-Wholesale sector's gain of 4.25% and the S&P 500's gain of 6.9%.Market participants will be closely following the financial results of Builders FirstSource in its upcoming release. On that day, Builders FirstSource is projected to report earnings of $2.37 per share, which would represent a year-over-year decline of 32.29%. Meanwhile, the latest consensus estimate predicts the revenue to be $4.29 billion, indicating a 3.81% decrease compared to the same quarter of the previous year. For the annual period, the Zacks Consensus Estimates anticipate earnings of $8.54 per share and a revenue of $16.34 billion, signifying shifts of -26.12% and -0.37%, respectively, from the last year. Investors might also notice recent changes to analyst estimates for Builders FirstSource. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook. Based on our research, we believe these estimate revisions are directly related to near-term stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model. 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. Within the past 30 days, our consensus EPS projection has moved 0.02% higher. Builders FirstSource currently has a Zacks Rank of #4 (Sell). Looking at its valuation, Builders FirstSource is holding a Forward P/E ratio of 13.75. This signifies a discount in comparison to the average Forward P/E of 19.5 for its industry. One should further note that BLDR currently holds a PEG ratio of 7.47. 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 average PEG ratio for the Building Products - Retail industry stood at 5.72 at the close of the market yesterday. The Building Products - Retail industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 164, which puts it in the bottom 34% of all 250+ industries. The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions. Research Chief Names "Single Best Pick to Double"From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Builders FirstSource, Inc. (BLDR): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks