Builders FirstSource (BLDR) Underperforms Market: Key Factors to Consider for Investors

Builders FirstSource (BLDR) closed at $107.98 in the latest trading session, marking a -3.34% decrease from the previous day. The stock underperformed the S&P 500, which registered a daily loss of 0.84%. The Dow experienced a decline of 0.7%, while the tech-heavy Nasdaq depreciated by 0.91%. Over the last month, Builders FirstSource's shares have seen a decrease of 7.4%, outpacing the Retail-Wholesale sector's loss of 0% but falling behind the S&P 500's gain of 1.44%. The investment community is closely monitoring the company's upcoming earnings release, with expectations of earnings per share (EPS) of $2.37, reflecting a 32.29% decrease from the same quarter last year. The most recent consensus estimate anticipates revenue of $4.29 billion, indicating a 3.81% downward movement from the same quarter last year. For the full year, Zacks Consensus Estimates are projecting earnings of $8.54 per share and revenue of $16.34 billion, which would represent changes of -26.12% and -0.37%, respectively, from the prior year. Investors should also note any recent changes to analyst estimates for Builders FirstSource, as these revisions tend to reflect the latest near-term business trends and can signify analyst optimism regarding the company's business and profitability. The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive track record of superior performance, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.02% higher, and Builders FirstSource currently carries a Zacks Rank of #4 (Sell). In terms of valuation, Builders FirstSource is currently being traded at a Forward P/E ratio of 13.09, which is lower than its industry average of 18.91, indicating that it is trading at a discount comparatively. Additionally, the company's PEG ratio of 7.11 suggests that it is expected to have a higher earnings growth rate than its industry peers. By the end of yesterday's trading, the Building Products - Retail industry had an average PEG ratio of 5.52. The Building Products - Retail industry is part of the Retail-Wholesale sector and currently has a Zacks Industry Rank of 93, which places it in the top 38% of all 250+ industries. To follow BLDR in the coming trading sessions, be sure to utilize Zacks.com for the latest recommendations and stock analysis reports.