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Valued at a market cap of $17.4 billion, Builders FirstSource, Inc. (BLDR) is a leading supplier of building materials, manufactured components, and construction services for residential and commercial markets in the U.S. The Texas, company serves professional homebuilders, remodelers, and contractors through a network of over 500 distribution and manufacturing facilities across the country.
BLDR shares have lagged behind the broader market over the past year. Over the past 52 weeks, BLDR declined 16.3%, while the broader S&P 500 Index ($SPX) has soared 23.5% returns. However, in 2025, BLDR surged 6.7%, surpassing SPX’s 4% gains on a YTD basis.
Narrowing the focus, BLDR has underperformed the SPDR S&P Homebuilders ETF’s (XHB) 8.8% returns over the past 52 weeks and 1.4% gains on a YTD basis.
Builders FirstSource shares jumped nearly 5% after releasing its Q3 earnings report on Nov. 5. Despite a 6.7% year-over-year decline in net sales to $4.2 billion due to lower organic revenue and commodity deflation, the company maintained a strong 32.8% gross margin. It also completed six acquisitions and remains optimistic about long-term growth. Additionally, operating cash flow rose 12.4% to $730 million, while free cash flow climbed 18% to $634.7 million.
For FY2024, that ended in December, analysts expect Builders FirstSource’s EPS to drop 21.2% year over year to $11.50. The company’s earnings surprise history is mixed. It beat the consensus estimates in three of the last four quarters, while missing on another occasion.
Among the 18 analysts covering the BLDR stock, the consensus rating is a “Strong Buy.” That’s based on 12 “Strong Buy” ratings, two “Moderate Buy,” and four “Holds.”
This configuration is slightly less bullish than a month ago when 13 analysts recommended “Strong Buy” rating for the stock.
On Jan. 19, Barclays PLC (BCS) lowered its price target for Builders FirstSource from $211.00 to $188.00 while maintaining an “Overweight” rating.
BLDR’s mean price target of $197.50 represents a premium of 29.5% from current price levels. The street-high target of $230 indicates a potential upside of 50.8%.
