Builders FirstSource (BLDR) Outpaces Stock Market Gains: What You Should Know

Builders FirstSource (BLDR) ended the recent trading session at $144.03, demonstrating a +1.44% swing from the preceding day's closing price. The stock outperformed the S&P 500, which registered a daily gain of 1.26%. Elsewhere, the Dow gained 0.8%, while the tech-heavy Nasdaq added 1.77%.The construction supply company's shares have seen a decrease of 19.28% over the last month, not keeping up with the Retail-Wholesale sector's loss of 1.93% and the S&P 500's loss of 2.82%.The investment community will be paying close attention to the earnings performance of Builders FirstSource in its upcoming release. In that report, analysts expect Builders FirstSource to post earnings of $2.30 per share. This would mark a year-over-year decline of 35.21%. Our most recent consensus estimate is calling for quarterly revenue of $3.85 billion, down 7.13% from the year-ago period.Investors should also note any recent changes to analyst estimates for Builders FirstSource. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 1.01% lower. Builders FirstSource is currently sporting a Zacks Rank of #3 (Hold).In terms of valuation, Builders FirstSource is currently trading at a Forward P/E ratio of 11.57. Its industry sports an average Forward P/E of 13.33, so one might conclude that Builders FirstSource is trading at a discount comparatively.It's also important to note that BLDR currently trades at a PEG ratio of 0.75. 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 2.33 as of yesterday's close.The Building Products - Retail industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 87, positioning it in the top 35% of all 250+ industries.The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.You can find more information on all of these metrics, and much more, on Zacks.com.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 ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks