Builders FirstSource (BLDR) Surpasses Market Returns: Some Facts Worth Knowing

Builders FirstSource (BLDR) closed at $125.61 in the latest trading session, marking a +0.54% move from the prior day. This change outpaced the S&P 500's 0.38% gain on the day. Meanwhile, the Dow lost 0.03%, and the Nasdaq, a tech-heavy index, added 0.87%.The construction supply company's shares have seen a decrease of 7.4% over the last month, surpassing the Retail-Wholesale sector's loss of 7.71% and falling behind the S&P 500's loss of 5.59%.The investment community will be closely monitoring the performance of Builders FirstSource in its forthcoming earnings report. The company is forecasted to report an EPS of $1.36, showcasing a 48.68% downward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $3.69 billion, indicating a 5.15% decline compared to the corresponding quarter of the prior year.Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $9.55 per share and revenue of $16.92 billion. These totals would mark changes of -17.39% and +3.16%, respectively, from last year.It's also important for investors to be aware of any recent modifications 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.Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 2.71% lower. Currently, Builders FirstSource is carrying a Zacks Rank of #4 (Sell).In terms of valuation, Builders FirstSource is currently trading at a Forward P/E ratio of 13.08. This signifies a discount in comparison to the average Forward P/E of 14.78 for its industry.It's also important to note that BLDR currently trades at a PEG ratio of 1.53. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Building Products - Retail industry had an average PEG ratio of 2.61 as trading concluded yesterday.The Building Products - Retail industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 210, which puts it in the bottom 16% 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.Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.3% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>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