Are Wall Street Analysts Bullish on Builders FirstSource Stock?

Company Overview - Builders FirstSource, Inc. (BLDR) is a Texas-based company that manufactures and supplies building materials, components, and construction services to various customers including professional homebuilders and remodelers, with a market cap of $13.7 billion and approximately 570 locations across 43 states [1] Stock Performance - Over the past year, BLDR shares have underperformed the broader market, declining 17.5% compared to a 14.4% increase in the S&P 500 Index [2] - However, in 2026, BLDR stock has increased by 24.8%, outperforming the S&P 500's 1.4% rise year-to-date [2] - Compared to the SPDR S&P Homebuilders ETF (XHB), which gained about 13.4% over the past year, BLDR's year-to-date gains have surpassed the ETF's 16.9% returns [3] Market Challenges and Opportunities - BLDR's struggles are attributed to a weak housing market, low sales, and margin pressure, which have negatively impacted investor confidence [6] - Recent improvements in housing data and expectations for policy support, such as potential rate cuts, have contributed to a rise in the stock this year [6] - While acquisitions have driven some growth, organic sales and commodity deflation have posed challenges [6] Earnings Expectations - For the fiscal year ending December 2025, analysts project a 38.9% decline in BLDR's EPS to $7.06 on a diluted basis [7] - The company has a strong earnings surprise history, beating consensus estimates in the last four quarters [7] - Among 23 analysts covering BLDR, the consensus rating is a "Moderate Buy," with nine "Strong Buy" ratings, one "Moderate Buy," 12 "Holds," and one "Strong Sell" [7] Analyst Ratings - The current analyst configuration is less bullish than a month ago, with only 10 analysts suggesting a "Strong Buy" [8] - DA Davidson maintained a "Neutral" rating on BLDR and lowered the price target to $111 on February 2 [8]