Builders FirstSource (BLDR) Stock Moves -0.94%: What You Should Know

This story originally appeared on Zacks

Builders FirstSource (BLDR) closed at $68.38 in the latest trading session, marking a -0.94% move from the prior day. This move was narrower than the S&P 500’s daily loss of 1.9%. Meanwhile, the Dow lost 1.43%, and the Nasdaq, a tech-heavy index, added 0.06%.

Prior to today’s trading, shares of the construction supply company had lost 14.33% over the past month. This has lagged the Retail-Wholesale sector’s loss of 2.93% and the S&P 500’s loss of 3.39% in that time.

Wall Street will be looking for positivity from Builders FirstSource as it approaches its next earnings report date. This is expected to be March 1, 2022. In that report, analysts expect Builders FirstSource to post earnings of $1.89 per share. This would mark year-over-year growth of 50%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.35 billion, up 71.95% from the year-ago period.

Investors should also note any recent changes to analyst estimates for Builders FirstSource. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company’s business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Builders FirstSource is holding a Zacks Rank of #1 (Strong Buy) right now.

Looking at its valuation, Builders FirstSource is holding a Forward P/E ratio of 10.06. Its industry sports an average Forward P/E of 11.87, so we one might conclude that Builders FirstSource is trading at a discount comparatively.

The Building Products – Retail industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 49, putting it in the top 20% 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.

To follow BLDR in the coming trading sessions, be sure to utilize Zacks.com.

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