Builders FirstSource, Inc. (BLDR), a leading supplier of building products based in Irving, Texas, is experiencing a significant decline in its stock performance. The company, valued at approximately $11.6 billion by market capitalization, has seen its stock price plummet by 37.5% from a 52-week high of $175.24 reached on December 11, 2024. This downturn is particularly noteworthy as the company struggles to keep pace with the broader market, with the S&P 500 Index recording a 5.4% increase during the same period.
The challenges facing Builders FirstSource are evident in its year-to-date performance, where its stock has dropped 23.3%. Over the past year, the decline is even steeper at 35.8%, contrasting sharply with the S&P 500’s 17.1% gain in 2025 and 14.1% returns over the same period. Additionally, the stock has consistently traded below its 200-day moving average and has remained under the 50-day moving average since mid-September, indicating a bearish trend.
On October 30, 2024, Builders FirstSource reported its third-quarter financial results, which reflected better-than-expected figures despite a decline in stock prices. The company posted a topline revenue of $6.9 billion, representing a 6.9% decrease year-over-year. This figure, while lower than the previous year, exceeded analysts’ expectations by 3.8%. However, the adjusted earnings per share (EPS) fell sharply by 38.8% year-over-year to $1.88, although it still surpassed consensus estimates by 11.2%.
The performance of Builders FirstSource also lags behind that of its competitor, Masco Corporation (MAS), which has experienced a 12.6% decline year-to-date and a 20.1% drop over the past year. This underperformance raises concerns about Builders FirstSource’s market position and growth potential.
Despite these challenges, sentiment among analysts remains cautiously optimistic. Among the 24 analysts covering BLDR stock, the consensus rating is categorized as a “Moderate Buy.” The mean price target is set at $134.59, suggesting a potential upside of 22.8% from current price levels.
The decline in stock price, coupled with lower core organic net sales and commodity price deflation, has overshadowed Builders FirstSource’s growth from acquisitions. As the company navigates these turbulent market conditions, its ability to adapt and respond to industry demands will be crucial in regaining investor confidence and stabilizing its performance in the months ahead.
