Builders Firstsource Inc billboard, by Ken Wolter via Shutterstock
Builders FirstSource, Inc., headquartered in Irving, Texas (BLDR) is the largest U.S. provider of building products, prefabricated components and value-added services for residential construction, repair and remodeling. With a market capitalization of 11.8 billion dollarsBuilders FirstSource serves home builders, subcontractors, remodelers and professional consumers in the US.
The company has continued to underperform the broader market over the past year. BLDR stock prices have collapsed 25.2% in annual terms and 41.8% in the last 52 weeks, compared to the S&P 500 index ($SPX) 16.4% profitability in 2025 and gains of 14.1% over the past year.
To narrow the focus, FirstSource has also underperformed the sector-focused SPDR Industrial Select Sector Fund (XLII) 17.1% increase in annual terms and an increase of 7.7% in the last 52 weeks.
Despite reporting better-than-expected financial results, Builders FirstSource share prices decreased 3.1% in the negotiation session after the publication of his Third quarter results on October 30. While the company has continued to see growth from acquisitions, its lower core organic net sales and commodity deflation have reduced its overall sales. FirstSource’s top line for the quarter was $6.9 billion, down 6.9% from a year ago but beating Street expectations by 3.8%. Meanwhile, its adjusted EPS declined 38.8% year over year to $1.88, but beat the consensus estimates by 11.2%.
For full fiscal 2025, which ends in December, analysts expect BLDR to generate adjusted EPS of $7.03, down 39.2% year over year. On the positive note, the company has a strong track record of earnings surprises. It has surpassed Street earnings projections in each of the last four quarters.
Among the 22 analysts covering BLDR stock, the consensus rating is “Moderate purchase.” This is based on 10 “strong buys”, one “moderate buy”, 10 “holds” and one “strong sell”.
This setup is slightly more optimistic than a month ago, when two analysts gave “Strong Sell” recommendations.
On November 3, DA Davidson analyst Kurt Yinger maintained a “NeutralRating at BLDR, but reduced price target from $125 to $115.
BLDR’s average price target of $135.37 represents a notable 26.6% premium to current price levels. Meanwhile, the street’s high target of $166 suggests a staggering 55.3% upside potential.
On the date of publication, Aditya Sarawgi had no (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are for informational purposes only. For more information, see Barchart’s Disclosure Policy here.
