Trade-Ideas LLC identified

Builders FirstSource

(

BLDR

) as a pre-market mover with heavy volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Builders FirstSource as such a stock due to the following factors:

  • BLDR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $18.7 million.
  • BLDR traded 281,330 shares today in the pre-market hours as of 8:29 AM, representing 15.9% of its average daily volume.

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More details on BLDR:

Builders FirstSource, Inc. manufactures and supplies building materials, manufactured components, and construction services to professional contractors, sub-contractors, and consumers in the United States. BLDR has a PE ratio of 138. Currently there are 4 analysts that rate Builders FirstSource a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Builders FirstSource has been 1.3 million shares per day over the past 30 days. Builders FirstSource has a market cap of $1.2 billion and is part of the industrial goods sector and materials & construction industry. The stock has a beta of 2.03 and a short float of 12% with 4.83 days to cover. Shares are up 0.8% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Builders FirstSource as a

hold

. Among the primary strengths of the company is its robust revenue growth -- not just in the most recent periods but in previous quarters as well. At the same time, however, we also find weaknesses including deteriorating net income, generally higher debt management risk and disappointing return on equity.

Highlights from the ratings report include:

  • BLDR's very impressive revenue growth greatly exceeded the industry average of 10.0%. Since the same quarter one year prior, revenues leaped by 276.6%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • BUILDERS FIRSTSOURCE has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has reported a trend of declining earnings per share over the past year. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, BUILDERS FIRSTSOURCE swung to a loss, reporting -$0.22 versus $0.15 in the prior year. This year, the market expects an improvement in earnings ($0.89 versus -$0.22).
  • The gross profit margin for BUILDERS FIRSTSOURCE is currently lower than what is desirable, coming in at 27.24%. Regardless of BLDR's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of -1.21% trails the industry average.
  • The debt-to-equity ratio is very high at 14.39 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Along with the unfavorable debt-to-equity ratio, BLDR maintains a poor quick ratio of 0.86, which illustrates the inability to avoid short-term cash problems.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Building Products industry and the overall market, BUILDERS FIRSTSOURCE's return on equity significantly trails that of both the industry average and the S&P 500.

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