1BLDR / Builders FirstSource, Inc. (BIT) - Forecast, Price Target, Estimates, Predictions

This card shows analyst upgrades/downgrades for Builders FirstSource, Inc.. An analyst rating is a classification that gives investors a sense of analyst sentiment about the direction and performance of an equity - usually a stock - over a period of time, typically 12 months.

The standard analyst ratings are generally as follows:

• Buy/Overweight/Outperform - Any of these ratings conveys an analyst’s belief that the stock is likely to outperform a market index (e.g. the S&P 500).
• Hold/Equal-Weight/Market Perform - Any of these ratings conveys an analyst’s belief that the stock is likely to perform in line with a market index.
• Sell/Underweight/Underperform - Any of these ratings suggest that an analyst believes the stock is likely to underperform a market index.

When an analyst upgrades a stock, they are signaling that the company’s fundamentals are being undervalued by investors. It could also mean they believe the market is underestimating the company’s potential. The opposite is true when a stock receives a downgrade.

The average rating of each individual analyst’s rating is the consensus rating for a stock. This gives investors a broader sense of the overall sentiment for that stock.

Why Are Analyst Ratings important?

In addition to being able to interpret financial data, stock analysts have connections within the companies they cover that give them access to information retail investors do not have.

Therefore, analyst ratings can help you find opportunities in the market. However, they are guidelines more than recommendations. This is why it’s important to look at analyst ratings over a period of time.

If analysts change their ratings frequently, you should pay close attention to the company’s fundamentals. For example, has there been a significant change to the company’s earnings growth and/or debt?

You should also pay attention to the number of analysts covering a stock over the course of a year. In general, the more analysts who cover the stock give the consensus rating more credibility, but each individual rating less overall weight.

How to Use Analyst Ratings ?

Analyst ratings are one data point for you to consider. Here are some strategies you can use to fine tune your research.

Look at more than one analyst and don’t hesitate to look at analysts that have differing views. This can help challenge any preconceived ideas you have about a stock and point out ways in which your thesis for owning or avoiding a stock may have changed.

Compare a stock’s rating with other stocks in its industry or sector. In some cases, a stock is simply superior to others in its sector. However, at other times, it could be overvalued based on investor sentiment instead of fundamentals.

How are the Fintel Analyst Ratings different?

Analyst ratings by Fintel are presented in close to real-time to stay ahead of generalized information flow. Combined with target price estimates and revenue estimates for the company you have greater accuracy despite market volatility.

The forecasted annual earnings of Builders FirstSource, Inc. in 2027-12-31 is 13.92 per share.

One part of an analyst’s rating is a profit (i.e., earnings) estimate for the current quarter and/or future quarters. The measurement given is earnings per share (EPS). EPS is a metric that indicates how much a company earned as represented by one share of its stock over a specific period (typically three months).

Earnings per Share Calculation

To understand the earnings per share calculation, you must understand net income. Net income is the amount of money a company has left over after deducting appropriate expenses and taxes from its revenues).

The formula for earnings per share is net income divided by the total number of outstanding shares (i.e., available for purchase). For example:

Company A has a net income of $100 million and forty million outstanding shares. The EPS calculation is as follows:

100,000,000/40,000,000 = $2.50 per share

How to use Earnings Per Share in Stock Analysis

Earnings per share is an essential metric for you to consider when deciding to buy a stock. After all, a company with high earnings per share is productive and generates revenue in excess of its operating costs.

However, it’s not the only metric you should use. Metrics like price-to-earnings and debt-to-equity add additional perspective about a company’s health.

You should also be sure to compare a company’s EPS with a company in its sector. However, when you do, be aware that EPS is different and more important than net profit by itself. You may see a company that has a rising net profit. But if its outstanding shares are also rising, then its EPS might be flat or even edging lower.