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Builders FirstSource (BLDR) Stock Declines While Market Improves: Some Information for Investors

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Builders FirstSource (BLDR - Free Report) closed the latest trading day at $130.85, indicating a -0.67% change from the previous session's end. The stock fell short of the S&P 500, which registered a gain of 0.16% for the day. Meanwhile, the Dow experienced a rise of 0.01%, and the technology-dominated Nasdaq saw an increase of 0.46%.

Shares of the construction supply company witnessed a loss of 4.94% over the previous month, beating the performance of the Retail-Wholesale sector with its loss of 5.51% and underperforming the S&P 500's loss of 3.59%.

Analysts and investors alike will be keeping a close eye on the performance of Builders FirstSource in its upcoming earnings disclosure. On that day, Builders FirstSource is projected to report earnings of $1.36 per share, which would represent a year-over-year decline of 48.68%. At the same time, our most recent consensus estimate is projecting a revenue of $3.69 billion, reflecting a 5.15% fall from the equivalent quarter last year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $9.55 per share and a revenue of $16.92 billion, representing changes of -17.39% and +3.16%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for Builders FirstSource. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 4.72% lower within the past month. At present, Builders FirstSource boasts a Zacks Rank of #4 (Sell).

From a valuation perspective, Builders FirstSource is currently exchanging hands at a Forward P/E ratio of 13.8. This indicates a discount in contrast to its industry's Forward P/E of 15.14.

One should further note that BLDR currently holds a PEG ratio of 1.61. 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. BLDR's industry had an average PEG ratio of 2.64 as of yesterday's close.

The Building Products - Retail industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 226, putting it in the bottom 10% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


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