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

In the latest trading session, Builders FirstSource (BLDR) closed at $142.73, marking a -2.61% move from the previous day. This change lagged the S&P 500's daily loss of 0.05%. Elsewhere, the Dow lost 0.59%, while the tech-heavy Nasdaq added 0.45%. Prior to today's trading, shares of the construction supply company had gained 6.09% outpaced the Retail-Wholesale sector's gain of 4.45% and the S&P 500's gain of 3.44%.The investment community will be closely monitoring the performance of Builders FirstSource in its forthcoming earnings report. The company is forecasted to report an EPS of $1.71, showcasing a 44.3% downward movement from the corresponding quarter of the prior year. Alongside, our most recent consensus estimate is anticipating revenue of $3.89 billion, indicating a 7.98% downward movement from the same quarter last year. For the full year, the Zacks Consensus Estimates are projecting earnings of $7.1 per share and revenue of $15.22 billion, which would represent changes of -38.58% and -7.17%, respectively, from the prior year. It is also important to note the recent changes to analyst estimates for Builders FirstSource. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the business outlook. Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 no change in the Zacks Consensus EPS estimate. Builders FirstSource presently features a Zacks Rank of #5 (Strong Sell). From a valuation perspective, Builders FirstSource is currently exchanging hands at a Forward P/E ratio of 20.65. This valuation marks a premium compared to its industry average Forward P/E of 17.93. Investors should also note that BLDR has a PEG ratio of 15.52 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The average PEG ratio for the Building Products - Retail industry stood at 8.17 at the close of the market yesterday. The Building Products - Retail industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 234, finds itself in the bottom 6% echelons 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. Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming 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