Pumping the Brakes? Analysts Take on Builders FirstSource, Inc. (NASDAQ:BLDR)

When monitoring analyst ratings, investors can use the average brokerage recommendation score to determine the consensus view on the stock. The ABR is an average of the recommendations offered by research firms on a given equity. The ABR rank is displayed in the range of 1 to 5 where 1 indicates a Strong Buy and a rating of 5 represents a Strong Sell. While tracking shares of Builders FirstSource, Inc. (NASDAQ:BLDR), we have noted that the current average broker rating is currently 2.09. Going further, we can see that 5 Wall Street analysts have given the stock a Strong Buy or Buy rating, based on analysts polled by Zacks Research.

Some traders may be employing technical analysis to try and conquer the market. There are plenty of various indicators that traders can use. Studying different technical indicators can provide some good insight, but the individual investor may want to start by focusing on a few different popular ones. Deciding which indicators to use may require a significant amount of homework. Trying to track too many signals at first might not be the best idea, and it may even create more confusion. Once the indicators have been chosen, traders may spend a good amount of time back testing strategies before making some trades.           

Shifting gears, we can see that the current quarter EPS consensus estimate for Builders FirstSource, Inc. (NASDAQ:BLDR) is 0.27. This EPS estimate is using 5 sell-side analysts polled by Zacks Research. For the prior reporting period, the company posted a quarterly EPS of 0.72. As we move through earnings season, all eyes will be on the company to see if they can beat analyst estimates and show improvement from the last quarter. When a company reports actual earnings numbers, the surprise factor can cause a stock price to realize increased activity. Investors and analysts will be closely watching to see how the earnings results impact the stock after the next release. Many investors will decide to be cautious around earnings releases and delay buy/sell moves until after the stock price has steadied.

Viewing some popular support and resistance marks on shares of Builders FirstSource, Inc. (NASDAQ:BLDR), we can see that the 52-week high is presently $23.33, and the 52-week low is currently $10.23. When the stock is trading near the 52-week high or 52-week low, investors may be on the lookout for a potential break through the level. Looking at recent action, we can see that the stock has been trading near the $24.44 level. Investors may also want to track historical price activity. Over the past 12 weeks, the stock has changed 12.38%. Looking further back to the beginning of the calendar year, we note that shares have moved 107.24%. Over the previous 4 weeks, shares have seen a change of 12.43%. Over the last 5 trading sessions, the stock has moved -0.4%. Investors will be monitoring stock activity over the next few days to try and gauge which way the momentum is shifting.

Even professional traders can sometimes guess wrong about market direction. Many traders may have to balance emotion with the fear of missing out on a strong market move. Investors may be tempted to jump on the bullish bandwagon when stocks are powering higher. Investors on the wrong side of the market swing may have to consider what may be in store over the next few months. It’s only natural to pause and take a little breather once in a while. Investors may be chomping at the bit to buy up the dips if the market continues to advance. Fresh buying opportunities can surface at any moment, and the prepared trader may be poised to take full advantage. Keeping a close watch on earnings beats may help investors catch the wave early enough to secure some future profits.

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