Builders FirstSource, Inc. (BLDR), a major player in the U.S. building products industry, has experienced significant stock declines, raising concerns among investors. Based in Irving, Texas, the company boasts a market capitalization of $11.6 billion, positioning it among the large-cap stocks in the market. Despite its size and influence, BLDR’s stock has plummeted 37.5% from its 52-week high of $175.24, reached on December 11, 2023.
The downward trend has been particularly pronounced in recent months. Over the past three months, Builders FirstSource’s stock has decreased by 21.9%, in stark contrast to the 5.4% gain in the S&P 500 Index during the same period. This underperformance is mirrored in the longer-term perspective, with a year-to-date decline of 23.3% and a staggering 35.8% drop over the past year. In comparison, the S&P 500 has recorded a 17.1% increase in 2025 and a 14.1% rise over the past twelve months.
Investors have noted that Builders FirstSource’s stock has consistently traded below its 200-day moving average in the past year and has remained under its 50-day moving average since mid-September. This trend underscores the company’s ongoing struggles, despite reporting better-than-expected financial results. Following the announcement of its third-quarter earnings on October 30, 2024, BLDR’s stock fell by 3.1%.
In its Q3 report, Builders FirstSource revealed a topline revenue of $6.9 billion, reflecting a 6.9% decrease year-over-year. Although this figure exceeded analysts’ expectations by 3.8%, the decline was driven by lower core organic net sales and commodity deflation. The adjusted earnings per share (EPS) also faced challenges, declining 38.8% from the previous year to $1.88. Despite this drop, the adjusted EPS surpassed consensus estimates by 11.2%.
In comparison to its peers, Builders FirstSource has not fared well against Masco Corporation (MAS), which has seen a 12.6% decline year-to-date and a 20.1% drop over the past year. Among the 24 analysts covering BLDR stock, the consensus rating remains a “Moderate Buy.” The average price target of $134.59 suggests a potential upside of 22.8% from its current price levels.
As Builders FirstSource navigates these challenging market conditions, its future performance will be closely monitored by investors and analysts alike. The company’s ability to adapt and respond to the evolving landscape of the residential construction market will be critical in determining its trajectory in the coming months.
