BLDR

Conference Call Announcement: Builders FirstSource, Inc. will hold a conference call on May 1, 2025, at 8:00 a.m. Central Time to discuss financial results and business matters, hosted by CEO Peter Jackson and CFO Pete Beckmann.

Company Overview: Builders FirstSource is the largest U.S. supplier of building products and services for residential construction, operating in 43 states with approximately 590 locations, offering a wide range of structural and related building products.

Stock Performance: Builders FirstSource Inc. shares increased by 4.39% to $131.12, marking the third consecutive day of gains amidst a positive trading session for the stock market.

Market Trends: The S&P 500 Index rose by 0.67% and the Dow Jones Industrial Average increased by 0.56%, contributing to the overall favorable market conditions.

Analyst Ratings Overview: Builders FirstSource received mixed ratings from 12 analysts, with 7 bullish and 4 somewhat bullish perspectives, while the average price target has decreased to $171.25 from $192.10 over the past month.

Financial Performance Challenges: The company faces financial difficulties, including a negative revenue trend of -7.96%, below-average net margin of 4.98%, and high debt-to-equity ratio of 1.01, indicating potential operational and profitability issues.

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Stock Performance: Builders FirstSource (BLDR) closed at $125.61, with a slight increase of 0.54%, while experiencing a 7.4% decline over the past month, which is worse than the Retail-Wholesale sector and S&P 500 losses.

Earnings Forecast: The upcoming earnings report is expected to show a significant drop in EPS by 48.68% year-over-year, with revenue projected to decline by 5.15%. Builders FirstSource currently holds a Zacks Rank of #4 (Sell), indicating a challenging outlook.

Investment Strategy: Diversifying investments across multiple stocks, particularly in promising growth sectors like AI and technology, can enhance the likelihood of achieving significant returns, as demonstrated by Nvidia, Axon Enterprise, and Builders FirstSource which have shown over 10x returns in the past decade.

Stock Performance Outlook: While Nvidia continues to thrive due to its dominance in AI chip production, Axon Enterprise shows strong revenue growth potential through body cameras and AI efficiency, and Builders FirstSource may offer long-term value despite recent declines, suggesting that patience could lead to solid gains in the future.

Stock Performance: Builders FirstSource (BLDR) closed at $128.99, down 1.42%, underperforming the S&P 500 and experiencing a 7.05% decline over the past month; upcoming earnings are projected to show a significant drop in EPS and revenue compared to the previous year.

Analyst Outlook: The company currently holds a Zacks Rank of #4 (Sell) with a Forward P/E ratio of 13.7, indicating it is trading at a discount relative to its industry; investors should monitor analyst estimate revisions as they correlate with share price momentum.

Company Overview and Performance: Builders FirstSource, Inc. (BLDR), a large-cap supplier of structural building products with a market cap of $15 billion, has seen its stock decline 38.2% from its 52-week high, underperforming the Dow Jones Industrials Average over various time frames.

Analyst Outlook: Despite recent weak performance, analysts maintain a "Strong Buy" consensus on BLDR, with expectations for fiscal year 2025 net sales between $16.5 billion and $17.5 billion, while the stock is trading above the mean price target of $176.33.

General Motors' Supply Chain Strategy: GM is adjusting its supply chain to manage tariff impacts but is hesitant to invest significantly without clearer policy direction, according to CEO Mary Barra.

Impact of Uncertainty on Construction and Sales: Builders FirstSource noted that uncertainty in policy is causing a slowdown in single-family home construction, while Rockwell Automation reported sales delays due to ongoing trade and policy uncertainties.

Current Stock Performance: Builders FirstSource (BLDR) closed at $127.72, down 0.34%, with a significant 16.73% loss over the past month, while the company is expected to report a 48.68% decline in EPS for the upcoming earnings report.

Analyst Estimates and Valuation: The Zacks Rank for Builders FirstSource is currently #4 (Sell), reflecting an 18.02% decrease in EPS estimates, and the company trades at a Forward P/E ratio of 13.42, lower than the industry average of 14.69.

Market Correction: The S&P 500 fell 1.4% on Thursday, marking a correction with a total decline of 10.1% from its all-time high in February, driven by concerns over economic growth and elevated interest rates from the Federal Reserve.

Adobe's Decline: Adobe was the largest decliner among S&P 500 stocks, dropping 13.9% after providing an outlook that fell short of market expectations, contributing to the overall market selloff.

Investment Analysis of Builders FirstSource, Inc.: Builders FirstSource, Inc. (BLDR) has received a high rating of 72% from Validea's P/E/Growth Investor model based on Peter Lynch's strategy, indicating strong fundamentals and valuation in the Forestry & Wood Products industry.

About Peter Lynch and Validea: Peter Lynch is renowned for his successful management of Fidelity's Magellan Fund, achieving significant returns, and Validea provides investment research based on strategies from legendary investors like Lynch.

Stocks Added to Zacks Rank #5: ASE Technology Holding Co., Builders FirstSource, and Cool Company Ltd. have been added to the Zacks Rank #5 (Strong Sell) List due to downward revisions in their earnings estimates over the past 60 days.

Zacks Top 10 Stocks for 2025: Zacks Investment Research highlights a portfolio of 10 top stocks for 2025, which has shown significant success, outperforming the S&P 500 since its inception in 2012.

Analyst Ratings: Stifel Nicolaus analyst W. Andrew Carter maintains a Buy rating on Builders Firstsource (BLDR) with a price target of $156, while the stock has an analyst consensus of Strong Buy and a higher price target consensus of $176.71.

Stock Performance: Builders Firstsource shares closed at $140.78, with a one-year high of $214.70 and a low of $130.75, indicating potential for growth based on analysts' ratings and targets.

Analyst Ratings on Builders Firstsource: Keith Hughes from Truist Financial maintains a Buy rating on Builders Firstsource with a price target of $180, while Barclays also issued a Buy rating. However, D.A. Davidson has a Hold rating on the stock.

Company Performance: Builders Firstsource reported a quarterly revenue of $3.82 billion and a net profit of $190.2 million for the quarter ending December 31, which is a decline compared to last year's revenue of $4.15 billion and net profit of $350.69 million.

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Analyst Rating Update: BMO Capital analyst Ketan Mamtora has reduced the price target for Builders FirstSource (BLDR) from $175 to $168 while maintaining a Market Perform rating, citing concerns over soft housing demand and potential pricing competition in the industry.

Market Sentiment: Other analysts have also lowered their price targets for Builders FirstSource, indicating a cautious outlook on the stock amidst a challenging housing market.

Analyst Ratings: Barclays analyst Matthew Bouley has maintained a Buy rating on Builders Firstsource (BLDR) with a price target of $165, while other analysts have varied ratings, including a Hold from BMO Capital.

Company Performance: Builders Firstsource reported a quarterly revenue of $3.82 billion and a net profit of $190.2 million for the quarter ending December 31, showing a decline compared to the previous year's revenue and profit figures.

Real-time Intelligence: Benzinga Pro offers traders the fastest news alerts and exclusive stories to enhance their market strategies.

Community Engagement: Over 10,000 serious traders are part of the Benzinga Pro community, benefiting from accurate stock market intelligence.

Analyst Ratings: D.A. Davidson analyst Kurt Yinger maintains a Hold rating on Builders Firstsource (BLDR), while the overall analyst consensus suggests a Strong Buy with an average price target of $185.54, indicating a potential upside of 28.35%.

Financial Performance: Builders Firstsource reported a quarterly revenue of $3.82 billion and a net profit of $190.2 million for the quarter ending December 31, showing a decline compared to last year's revenue of $4.15 billion and net profit of $350.69 million.