Is Builders FirstSource Stock Underperforming the S&P 500?

Irving, Texas-based Builders FirstSource, Inc. (BLDR) is one of the largest U.S. suppliers of building products, prefabricated components, and value-added services for residential construction, repair, and remodeling. Valued at $11.6 billion by market cap, it serves professional homebuilders, sub-contractors, remodelers, and consumers in the US.

Companies worth $10 billion or more are generally described as "large-cap stocks." BLDR fits right into that category, with its market cap exceeding this threshold, reflecting its substantial size and influence in the homebuilding products and equipment industry.

Despite its notable strengths, BLDR stock has tanked 37.5% from its 52-week high of $175.24 touched on Dec. 11, 2024. Meanwhile, BLDR stock prices have plunged 21.9% over the past three months, significantly underperforming the S&P 500 Index’s ($SPX) 5.4% uptick during the same time frame.

Builders FirstSource’s performance has remained grim over the longer term as well. BLDR stock prices have plunged 23.3% on a YTD basis and 35.8% over the past 52 weeks, underperforming SPX’s 17.1% surge in 2025 and 14.1% returns over the past year.

BLDR stock has traded mostly below its 200-day moving average over the past year and below its 50-day moving average since mid-September, underscoring its bearish trend.

Despite reporting better-than-expected financials, Builders FirstSource’s stock prices declined 3.1% in the trading session following the release of its Q3 results on Oct. 30. While the company has continued to observe growth from acquisitions, its lower core organic net sales and commodity deflation have driven down its overall sales. FirstSource’s topline for the quarter came in at $6.9 billion, down 6.9% year-over-year, but surpassed the Street’s expectations by 3.8%. Meanwhile, its adjusted EPS declined 38.8% year-over-year to $1.88, but exceeded the consensus estimates by 11.2%.

Meanwhile, Builders FirstSource has also underperformed its peer, Masco Corporation’s (MAS) 12.6% decline on a YTD basis and 20.1% plunge over the past year.

Among the 24 analysts covering the BLDR stock, the consensus rating is a “Moderate Buy.” As of writing, its mean price target of $134.59 suggests a 22.8% upside potential from current price levels.