In the latest trading session, Builders FirstSource (BLDR) closed at $124.15, reflecting a decline of 3.71% from the prior day. This performance is significantly below the broader market, as the S&P 500 recorded a daily gain of 0.49%. Similarly, the Dow Jones Industrial Average saw an increase of 0.38%, while the tech-heavy Nasdaq Composite climbed by 0.72%.
Over the past month, Builders FirstSource shares have depreciated by 3.22%. This decline contrasts sharply with the overall performance of the Retail-Wholesale sector, which saw a gain of 2.3%, and the S&P 500, which increased by 2.99%.
Looking ahead, the company’s upcoming earnings release has captured the attention of investors. Analysts expect Builders FirstSource to report earnings per share (EPS) of $1.71, a substantial decrease of 44.3% compared to the same quarter last year. Additionally, revenue forecasts suggest a figure of $3.89 billion, indicating a 7.98% drop from the prior year’s quarter.
For the full fiscal year, Zacks Consensus Estimates project earnings of $7.1 per share and revenue of $15.22 billion, representing a decline of 38.58% and 7.17%, respectively, from the previous year.
Investors should also consider any recent adjustments to analyst estimates for Builders FirstSource, as these revisions often reflect the latest trends in business performance. Analysts’ upward revisions can signal positivity regarding the company’s operational capabilities and profit generation potential. The Zacks Rank, a proprietary model that consolidates these estimate changes, offers a rating system from #1 (Strong Buy) to #5 (Strong Sell). Since 1988, stocks rated #1 have averaged annual gains of 25%, reflecting the effectiveness of this ranking system. Currently, Builders FirstSource holds a Zacks Rank of #5, indicating a Strong Sell.
On the valuation front, Builders FirstSource is trading at a Forward Price-to-Earnings (P/E) ratio of 18.16. In comparison, the industry average Forward P/E stands at 17.54, suggesting that Builders FirstSource may be trading at a premium relative to its peers. Furthermore, the company’s PEG ratio is currently at 13.66, which accounts for expected earnings growth rates, while the industry’s average PEG ratio is significantly lower at 7.22.
The Building Products – Retail industry, which includes Builders FirstSource, currently holds a Zacks Industry Rank of 234, placing it in the bottom 6% of over 250 industries. This ranking could indicate challenges ahead for companies within this sector as they navigate the evolving market landscape.
