Builders FirstSource, Inc.

(New York Stock Exchange)
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Somewhat Bearish -25

Builders FirstSource stock holds near its yearly low

AI-generated analysis

πŸ“‰ Builders FirstSource stock opened at $58.10 on September 18, 2026, trading just above its 12-month low of $56.56.

πŸ’° The company reported Q2 EPS of $1.17, missing consensus estimates by $0.08 for the quarter ended July 30, 2026.

πŸ“‰ Revenue fell 8.8% year over year to $3.86 billion in the most recent quarter.

πŸ“Š Net margin compressed to 0.71% while return on equity stood at 11.73% for the period.

🎯 Analysts project full-year EPS of $3.19 with a consensus price target of $87.27, suggesting ~50% upside.

πŸ“‰ Wells Fargo lowered its price target to $63 on September 11, 2026, maintaining an Equalweight rating.

πŸ’Έ The company has a $500 million buyback program active since April 30, 2026, supporting shareholder returns.

πŸ“ˆ Market capitalization is approximately $6.25 billion as of September 20, 2026.

Bullish Signals
  • The company has a $500 million buyback program active since April 30, 2026, demonstrating management's commitment to returning capital to shareholders.
  • Analysts maintain a consensus full-year EPS expectation of $3.19, indicating confidence in the company's ability to recover or stabilize earnings performance.
Risk Factors
  • Builders FirstSource reported Q2 EPS of $1.17, missing analyst estimates by $0.08 for the quarter ended July 30, 2026.
  • Revenue declined 8.8% year over year to $3.86 billion in the most recent quarter, signaling a contraction in core business demand.
Full Analysis
Builders FirstSource stock opened at $58.10 on September 18, 2026, trading near its yearly low of $56.56 and significantly below its high of $131.50. The company reported earnings for the quarter ended July 30, 2026, with EPS of $1.17, which missed analyst estimates by $0.08. Revenue declined 8.8% year over year to $3.86 billion, reflecting a challenging operating environment for the building products sector. Financial metrics for the quarter showed a net margin of 0.71% and a return on equity of 11.73%. Analysts maintain a consensus full-year EPS expectation of $3.19. The stock currently trades at a forward multiple of 63.85 times trailing earnings, indicating a valuation that is elevated relative to recent performance but supported by the company's market position in industrials. Analyst sentiment remains cautious with a consensus rating of Hold and an average price target of $87.27, implying approximately 50.2% upside potential from current levels. Wells Fargo recently lowered its price target to $63 while maintaining an Equalweight rating. The company has initiated a $500 million buyback program starting April 30, 2026, signaling management's commitment to capital allocation despite recent earnings misses.