Builders FirstSource (BLDR) Stock Slides as Market Rises: Facts to Know Before You Trade

Builders FirstSource (BLDR) ended the recent trading session at $129.46, demonstrating a -0.42% swing from the preceding day's closing price. The stock's performance was behind the S&P 500's daily gain of 0.49%. On the other hand, the Dow registered a loss of 0.2%, and the technology-centric Nasdaq increased by 1.22%.The construction supply company's stock has dropped by 16.75% in the past month, falling short of the Retail-Wholesale sector's loss of 10.63% and the S&P 500's loss of 8.15%.The upcoming earnings release of Builders FirstSource will be of great interest to investors. It is anticipated that the company will report an EPS of $1.36, marking a 48.68% fall compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $3.69 billion, down 5.15% from the prior-year quarter.For the full year, the Zacks Consensus Estimates are projecting earnings of $9.55 per share and revenue of $16.92 billion, which would represent 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 recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. The Zacks Consensus EPS estimate has moved 18.02% lower within the past month. Builders FirstSource is currently sporting a Zacks Rank of #5 (Strong Sell).Valuation is also important, so investors should note that Builders FirstSource has a Forward P/E ratio of 13.61 right now. This signifies a discount in comparison to the average Forward P/E of 14.59 for its industry.Investors should also note that BLDR has a PEG ratio of 1.59 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Building Products - Retail industry had an average PEG ratio of 2.64 as trading concluded yesterday.The Building Products - Retail industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 243, putting it in the bottom 4% 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.Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want 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 ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks