Builders FirstSource, Inc. (BLDR), based in Irving, Texas, manufactures and supplies building materials, manufactured components, and construction services to professional homebuilders, sub-contractors, remodelers, and consumers. Valued at $13.7 billion by market cap, the company has approximately 570 distribution and manufacturing locations, a presence in 43 states, and 90 of the top 100 Metropolitan Statistical Areas. 

Shares of building products supplier giant have underperformed the broader market over the past year. BLDR has declined 29.6% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 12.3%. In 2025, BLDR stock is down 16.4%, compared to the SPX’s marginal rise on a YTD basis. 

Narrowing the focus, BLDR’s underperformance is also apparent compared to the SPDR S&P Homebuilders ETF (XHB). The exchange-traded fund has fallen about 8.2% over the past year. Moreover, the ETF’s 5.6% dip on a YTD basis outshine the stock’s double-digit losses over the same time frame.

On May 1, BLDR shares closed down more than 6% after reporting its Q1 results. Its adjusted EPS of $1.51 surpassed Wall Street expectations of $1.50. The company’s revenue was $3.66 billion, missing Wall Street forecasts of $3.69 billion. BLDR expects full-year revenue in the range of $16.1 billion to $17.1 billion.

For the current fiscal year, ending in December, analysts expect BLDR’s EPS to decline 26.2% to $8.53 on a diluted basis. The company’s earnings surprise history is mixed. It beat the consensus estimate in three of the last four quarters while missing the forecast on another occasion.

Among the 19 analysts covering BLDR stock, the consensus is a “Moderate Buy.” That’s based on 12 “Strong Buy” ratings, two “Moderate Buys,” and five “Holds.”

This configuration is less bullish than a month ago, with 13 analysts suggesting a “Strong Buy.” 

On May 5, BMO Capital analyst Ketan Mamtora kept a “Market Perform” rating on BLDR and lowered the price target to $135, implying a potential upside of 13% from current levels.

The mean price target of $143.74 represents a 20.3% premium to BLDR’s current price levels. The Street-high price target of $190 suggests a notable upside potential of 59%.