Builders FirstSource BLDR is the largest U.S supplier of building products, prefabricated components, and value-added services to the professional market segment for new residential construction, repair, and remodeling.
Analysts have taken a bearish stance on the company’s EPS outlook amid a harsh operating environment, with the stock a Zacks Rank #5 (Strong Sell). The company also resides in the Zacks Building Products – Retail industry, which is currently ranked in the bottom 1% of all Zacks industries.
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Let’s take a closer look at what’s going on.
BLDR Shares Struggle
Down nearly 30% in 2026, BLDR shares have faced pressure on the back of a challenging operating environment. Quarterly results have largely skewed sentiment, with the company falling short of the Zacks Consensus EPS estimate by double-digit percentages in back-to-back releases.
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BLDR’s YoY sales growth rates have been primarily negative in recent years, a major reason, alongside a challenging housing market, for the continued poor performance over recent years. Please note that the chart below tracks the company’s YoY sales growth rate percentages, not actual sales figures.
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Margins have also been squeezed due to the less-than-ideal environment, resulting in a profitability crunch. Please note that the chart below tracks margins on a trailing twelve-month basis.
Image Source: Zacks Investment Research
Bottom Line
Negative earnings estimate revisions, stemming from a challenging operating environment, paint a challenging picture for the company’s shares in the near term.
Builders FirstSource BLDR is a Zacks Rank #5 (Strong Sell), indicating that analysts have taken a bearish stance on the company’s earnings outlook.
For those seeking strong stocks, the best idea would be to focus on stocks with a Zacks Rank #1 (Strong Buy) or a Zacks Rank #2 (Buy) – these stocks sport a notably stronger earnings outlook paired with the potential to deliver explosive gains in the near term.
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