In a welcome move, Builders FirstSource (BLDR) stock saw its Relative Strength Rating improve from 65 to 72 on Tuesday.

IBD's proprietary RS Rating measures market leadership by using a 1 (worst) to 99 (best) score that indicates how a stock's price action over the last 52 weeks compares to the rest of the market.

History reveals that the stocks that go on to make the biggest gains typically have an 80 or better RS Rating in the early stages of their moves. See if Builders FirstSource stock can continue to show renewed price strength and hit that benchmark.

When To Sell Stocks To Lock In Profits And Minimize Losses

Is Builders FirstSource Stock A Buy?

Builders FirstSource stock is trying to complete a consolidation with a 203.14 buy point. See if the stock can clear the breakout price in volume at least 40% higher than normal. Be aware that it's a fourth-stage base. Later-stage patterns can work, but have a higher chance of failing since, by that point, the stock has already climbed substantially..

The building and construction materials company reported negative growth for both sales and earnings last quarter.

Builders FirstSource stock holds the No. 20 rank among its peers in the Building-Construction Products/Miscellaneous industry group. Mueller Water Products (MWA), Tecnoglass (TGLS) and Armstrong Wrld Ind (AWI) are among the top 5 highly rated stocks within the group.

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