BLDR - Builders FirstSource: Disappointing Q1 As Multifamily Weighs
2024-05-08 04:48:20 ET
Summary
- Builders FirstSource shares plunged nearly 20% after reporting quarterly earnings, but are still up 43% from a year ago.
- The company's exposure to the single-family market is a positive, but the decline in multifamily sales outweighed the gains in single-family sales.
- Value-add product sales were soft, and comments about slowing momentum in single-family activity were concerning.
- The disappointing quarter and unattractive valuation compared to homebuilders mean investors should not buy the dip in BLDR.
Shares of Builders FirstSource ( BLDR ) plunged nearly 20% after reporting quarterly earnings. Still, shares are up 43% from a year ago. Back in September , I moved shares from buy to hold, which was arguably an overly cautious move as the stock is still up 36% since then, far ahead of the market's 20% rally....
Builders FirstSource: Disappointing Q1 As Multifamily Weighs