If you're trying to build your earnings season watch list by looking for stocks setting up in a base ahead of their next quarterly report, here's one that fits the bill: Builders FirstSource. It's expected to release its latest numbers around Mar. 1 and is currently approximately 15% under an 86.58 entry. The base is a third-stage consolidation, which is less likely than an earlier-stage base to generate a big new run.
Understand that buying a stock close to earnings is risky, since an EPS or sales miss could send it sharply lower. You can reduce your exposure by waiting to see the actual numbers and the market's reaction.
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What Can We Expect For Q4 Earnings?
Earnings growth picked up last quarter from 289% to 308%. But revenue gains fell from 187% to 140%.
Analysts are looking for EPS growth of 49% for the quarter, and 186% growth for the full year. EPS estimates for the full year were recently revised upward.
Builders FirstSource stock has a 97 Composite Rating and earns the No. 1 rank among its peers in the Building-Construction Products/Miscellaneous industry group. Atkore and Simpson Manufacturing are also among the group's highest-rated stocks.
Note: Dates for earnings reports are subject to change. Check the company's website for any updates.
