
Earnings season this quarter has been a wild ride with plenty of big winners and losers. Yesterday, Builders FirstSource ([BLDR]), manufacturer and supplier of building materials, announced earnings and then proceeded to fall by almost 20%.
Today's Weekly Analyst Rundown video has been separated into shorter, individual videos, in addition to the long-form video that is still found at the beginning of this report. Each asset class will be included at the top of the corresponding featured article today, and each sector that saw notable movement will have a video recording included in the US Sector Update or the Were You Aware. The Fund Score update will be included in tomorrow's Fund Score Overview article. The sections of the video that do not have a corresponding article or are covered in the Were You Aware are included below:
Weekly Momentum Update Video (3:21)
Weekly Size & Style Update Video (2:12)
Earnings season this quarter has been a wild ride with plenty of big winners and losers. Yesterday, Builders FirstSource (BLDR), manufacturer and supplier of building materials, announced earnings and then proceeded to fall by almost 20%. BLDR beat its EPS estimate but revenue was flat from last year. The biggest concern from BLDR came from the slowdown in multifamily sales, down 13.4% as the rental market has softened. Single-family sales, a much larger part of BLDR’s business, rose by 4.3% but it wasn’t enough to alleviate the issues in multi-family (SeekingAlpha). The single-day decline sent the stock down from a perfect 5 for 5’er to a poor 2 for 5’er.
Despite falling almost 20%, BLDR has a year-to-date return of -2.59% and a rolling one-year return of 46.18%. BLDR shares sit in heavily oversold territory with a weekly overbought/oversold reading of -96%. On the bright side, BLDR has support at $156 after falling to $160. With some support intact and heavily oversold readings, BLDR could bounce from here. However, the stock’s poor tech attribute makes it worth avoiding new long exposure.