Builders FirstSource, Inc.

(New York Stock Exchange)
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Bearish -65

Builders FirstSource (BLDR) Suffers a Larger Drop Than the General Market: Key Insights - Zacks Investment Research

Earnings report AI-generated analysis

πŸ“‰ Builders FirstSource (BLDR) shares dropped 2.81% to $59.16, lagging significantly behind the S&P 500's 0.76% decline and the sector's monthly performance.

πŸ“‰ The stock has fallen 12.24% over the past month, underperforming both the Retail-Wholesale sector and the broader market indices.

πŸ’° Analysts project current quarter EPS of $1.16, marking a substantial 38.3% decrease from the same quarter last year.

πŸ“‰ Revenue is expected to reach $3.8 billion for the quarter, representing a 3.62% decline compared to the prior-year quarter.

πŸ“‰ Full-year consensus estimates forecast earnings of $3.19 per share and revenue of $14.32 billion, with declines of -53.7% and -5.71% respectively.

πŸ† The company currently holds a Zacks Rank of #5 (Strong Sell) due to the negative shift in analyst estimates.

πŸ’Ή Builders FirstSource trades at a Forward P/E ratio of 19.1, offering a slight discount relative to the industry average of 19.24.

πŸ“Š The stock's PEG ratio stands at 1.95, which is identical to the Building Products - Retail industry average.

🏭 The Building Products - Retail industry holds a Zacks Industry Rank of 228, placing it in the bottom 8% of all 250+ industries.

Bullish Signals
  • Builders FirstSource trades at a Forward P/E ratio of 19.1, which denotes a discount relative to the industry average Forward P/E of 19.24.
  • The company's PEG ratio is 1.95, matching the widely-used industry average for the Building Products - Retail sector.
Risk Factors
  • BLDR shares dropped 2.81% in the latest session, significantly lagging the S&P 500's daily loss of 0.76%.
  • The stock has declined by 12.24% over the past month, falling short of the Retail-Wholesale sector's performance and the S&P 500's gain.
  • Analysts project current quarter EPS of $1.16, reflecting a severe 38.3% decrease from the same quarter last year.
  • Consensus revenue estimates for the quarter are set at $3.8 billion, down 3.62% from the prior-year quarter.
  • Full-year earnings projections indicate a drastic drop to $3.19 per share, representing a -53.7% change from the prior year.
  • Recent downward adjustments to analyst estimates have resulted in a Zacks Rank of #5 (Strong Sell) for the company.
Full Analysis
In the latest trading session, Builders FirstSource (BLDR) shares declined 2.81% to close at $59.16, significantly underperforming the broader market as the S&P 500 fell by only 0.76%. Over the past month, BLDR has dropped 12.24%, trailing both its Retail-Wholesale sector peers and the overall S&P 500 performance. Analysts are closely monitoring upcoming financial results for Builders FirstSource, with consensus estimates projecting a sharp contraction in earnings and revenue for the current quarter. Specifically, analysts expect EPS of $1.16, representing a 38.3% decrease year-over-year, and revenue of $3.8 billion, down 3.62% from the prior-year quarter. Full-year projections indicate even more significant declines, with consensus estimates calling for earnings of $3.19 per share and revenue of $14.32 billion, reflecting decreases of -53.7% and -5.71% respectively compared to the prior year. These downward revisions have contributed to a Zacks Rank of #5 (Strong Sell) for the company. Despite the negative outlook, valuation metrics show Builders FirstSource trading at a Forward P/E ratio of 19.1, which is slightly below the industry average of 19.24. The stock also carries a PEG ratio of 1.95, matching the industry average, while the broader Building Products - Retail industry ranks in the bottom 8% of all tracked industries.