Builders FirstSource
BLDR
Delayed Nasdaq - 06/15 10:00:00 pm
18.88USD
-0.89%

Good timing to anticipate the return of volatility

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Anas Lozach
Analyst

Strategy published on : 06/08/2018 | 14:27

long trade
Stop-loss triggered

Entry price : 19.73$
Target : 22$
Stop-loss : 18.6$
Potential : 11.51%

Builders FirstSource, Inc. shares stand out with an interesting technical chart pattern displaying horizontal consolidation. One would assume that the current accumulation phase will cede eventually to an acceleration to the upside.
Investors have an opportunity to buy the stock and target the $ 22.

Summary

● The company has strong fundamentals. More than 70% of listed companies have a lower mix of growth, profitability, debt and visibility criteria.

● The company has solid fundamentals for a short-term investment strategy.


Strengths

● Considering the small differences between the analysts' various estimates, the group's business visibility is good.

● The stock, which is currently worth 2018 to 0.49 times its sales, is clearly overvalued in comparison with peers.

● The company's attractive earnings multiples are brought to light by a P/E ratio at 11.12 for the current year.

● Analysts have consistently raised their revenue expectations for the company, which provides good prospects for the current and next years in terms of revenue growth.

● Over the past year, analysts have regularly revised upwards their sales forecast for the company.

● For several months, analysts have been revising their EPS estimates roughly upwards.

● For the last twelve months, analysts have been gradually revising upwards their EPS forecast for the upcoming fiscal year.

● Analysts have a positive opinion on this stock. Average consensus recommends overweighting or purchasing the stock.

● The difference between current prices and the average target price is rather important and implies a significant appreciation potential for the stock.

● Within the weekly time frame the stock shows a bullish technical configuration above the support level at 18.24 USD

Zonebourse.com 2018
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