#5 - Builder’s FirstSource (NYSE:BLDR)
A decision to invest in Builder’s FirstSource (NYSE:BLDR) will depend on how you feel about the continued strength in the housing market. In November 2021, the U.S. Census Bureau reported that housing starts increased by 11.8%, the highest level since March. This is part of what is being considered a secular uptrend. And despite housing starts increasing, most estimates say the United States is short millions of single-family homes.
And that’s good news for Builder’s FirstSource that manufacturers and supplies building materials, manufactured components, and provides other services to homebuilders, contractors, remodelers, and consumers throughout the United States.
The company was originally a lumber provider but has expanded far beyond that through a series of acquisitions. And those acquisitions have boosted the company’s margins and profits.
However, investors may want to wait to get a clear buying signal. BLDR stock is up 115% in the last 12 months which puts it at the ceiling of analysts’ estimates.
About Builders FirstSource
Builders FirstSource, Inc, together with its subsidiaries, manufactures and supplies building materials, manufactured components, and construction services to professional homebuilders, sub-contractors, remodelers, and consumers in the United States. It offers lumber and lumber sheet goods comprising dimensional lumber, plywood, and oriented strand board products that are used in on-site house framing; manufactured products, such as wood floor and roof trusses, floor trusses, wall panels, stairs, and engineered wood products; and windows, and interior and exterior door units, as well as interior trims and custom products comprising intricate mouldings, stair parts, and columns under the Synboard brand name.
Read More - Current Price
- $149.55
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 11 Buy Ratings, 4 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $195.13 (30.5% Upside)
