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Irving, Texas-based Builders FirstSource, Inc. (BLDR) is the largest U.S supplier of building products, prefabricated components, and value-added services for residential construction, repair, and remodeling. With a market cap of $11.8 billion, Builders FirstSource serves professional homebuilders, sub-contractors, remodelers, and consumers in the US.
The company has continued to underperform the broader market over the past year. BLDR stock prices have tanked 25.2% on a YTD basis and 41.8% over the past 52 weeks, compared to the S&P 500 Index’s ($SPX) 16.4% returns in 2025 and 14.1% gains over the past year.
Narrowing the focus, FirstSource has also underperformed the sector-focused Industrial Select Sector SPDR Fund’s (XLI) 17.1% surge on a YTD basis and 7.7% uptick over the past 52 weeks.
Despite reporting better-than-expected financials, Builders FirstSource’s stock prices declined 3.1% in the trading session following the release of its Q3 results on Oct. 30. While the company has continued to observe growth from acquisitions, its lower core organic net sales and commodity deflation have driven down its overall sales. FirstSource’s topline for the quarter came in at $6.9 billion, down 6.9% year-over-year, but surpassed the Street’s expectations by 3.8%. Meanwhile, its adjusted EPS declined 38.8% year-over-year to $1.88, but exceeded the consensus estimates by 11.2%.
For the full fiscal 2025, ending in December, analysts expect BLDR to deliver an adjusted EPS of $7.03, down 39.2% year-over-year. On the positive note, the company has a robust earnings surprise history. It has surpassed the Street’s bottom-line projections in each of the past four quarters.
Among the 22 analysts covering the BLDR stock, the consensus rating is a “Moderate Buy.” That’s based on 10 “Strong Buys,” one “Moderate Buy,” 10 “Holds,” and one “Strong Sell.”
This configuration is slightly more optimistic than a month ago, when two analysts gave “Strong Sell” recommendations.
On Nov. 3, DA Davidson analyst Kurt Yinger maintained a “Neutral” rating on BLDR, but lowered the price target from $125 to $115.
BLDR’s mean price target of $135.37 represents a notable 26.6% premium to current price levels. Meanwhile, the street-high target of $166 suggests a staggering 55.3% upside potential.
