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Bear of the Day: Builders FirstSource (BLDR)

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Key Takeaways

  • {\"0\":\"BLDR is a Zacks Rank #5 (Strong Sell), indicating bearish sentiment. \",\"1\":\"Shares have faced pressure in 2025, underperforming. \",\"2\":\"The company has operated in a challenging environment for years now. \"}

Builders FirstSource (BLDR - Free Report) is the largest U.S supplier of building products, prefabricated components, and value-added services to the professional market segment for new residential construction and repair and remodeling.

Analysts have taken a bearish stance on the company’s EPS outlook amid a harsh operating environment, with the stock a Zacks Rank #5 (Strong Sell).

Zacks Investment Research
Image Source: Zacks Investment Research

Let’s take a closer look at what’s going on.

Builders FirstSource

Down 11% in 2025, BLDR shares have faced pressure on the back of a challenging operating environment. Quarterly results have largely skewed sentiment, though strength off 2025 lows does bode favorably.

Sales and adjusted EPS fell 5% and 32% YoY, respectively, throughout its latest quarter.

Zacks Investment Research
Image Source: Zacks Investment Research

As we can see below, the company’s YoY sales growth rates have been primarily negative over recent years, a big reason, alongside a challenging housing market, behind the plunge from all-time highs.

Zacks Investment ResearchImage Source: Zacks Investment Research

Margins have also been squeezed due to the less-than-ideal environment, resulting in a profitability crunch. Please note that the chart below tracks margins on a trailing twelve-month basis.

Zacks Investment ResearchImage Source: Zacks Investment Research

Bottom Line

Negative earnings estimate revisions, stemming from a challenging operating environment, paint a challenging picture for the company’s shares in the near term.

Builders FirstSource (BLDR - Free Report) is a Zacks Rank #5 (Strong Sell), indicating that analysts have taken a bearish stance on the company’s earnings outlook.

For those seeking strong stocks, the best idea would be to focus on stocks with a Zacks Rank #1 (Strong Buy) or a Zacks Rank #2 (Buy) – these stocks sport a notably stronger earnings outlook paired with the potential to deliver explosive gains in the near term.


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