Builders FirstSource (BLDR) Beats Stock Market Upswing: What Investors Need to Know

Core Viewpoint - Builders FirstSource (BLDR) is experiencing a decline in stock performance, with upcoming earnings expected to show significant decreases in both earnings per share and revenue compared to the previous year [2][3]. Group 1: Stock Performance - In the latest trading session, Builders FirstSource stock increased by 1.69% to $104.63, outperforming the S&P 500's gain of 0.19% [1] - Over the past month, the stock has decreased by 7.31%, underperforming the Retail-Wholesale sector's loss of 1.45% and the S&P 500's gain of 0.54% [1] Group 2: Earnings Projections - The projected earnings per share (EPS) for Builders FirstSource is $1.31, indicating a 43.29% decrease from the same quarter last year [2] - The Zacks Consensus Estimate for revenue is $3.44 billion, reflecting a decline of 9.93% from the previous year [2] - Full-year estimates predict earnings of $7.07 per share and revenue of $15.27 billion, representing year-over-year changes of -38.84% for earnings and 0% for revenue [3] Group 3: Analyst Estimates and Rankings - Recent changes in analyst estimates for Builders FirstSource are crucial as they indicate the evolving business trends, with positive revisions suggesting analyst optimism [3] - Builders FirstSource currently holds a Zacks Rank of 2 (Buy), indicating a favorable outlook based on the consensus EPS projection remaining stable over the past 30 days [5] Group 4: Valuation Metrics - Builders FirstSource has a Forward P/E ratio of 16.63, which is higher than the industry average of 15.03, suggesting it is trading at a premium [6] - The company's PEG ratio stands at 12.5, significantly above the Building Products - Retail industry's average PEG ratio of 6.53 [7] - The Building Products - Retail industry is ranked 230 in the Zacks Industry Rank, placing it in the bottom 7% of over 250 industries, indicating weaker performance relative to other sectors [7][8]