Builders FirstSource, Inc. is a supplier and manufacturer of building materials, manufactured components and construction services to professional homebuilders, sub-contractors, remodelers, and consumers. Co. offer an integrated solution to its customers by providing manufacturing, supply, and installation of a full range of structural and related building products. Its manufactured products include its factory-built roof and floor trusses, wall panels, vinyl windows, custom millwork, and trim, as well as engineered wood that it designs, cuts, and assembles specifically for each home.
When researching a stock like Builders FirstSource, many investors are the most familiar with Fundamental Analysis — looking at a company's balance sheet, earnings, revenues, and what's happening in that company's underlying business. Investors who use Fundamental Analysis to identify good stocks to buy or sell can also benefit from BLDR Technical Analysis to help find a good entry or exit point. Technical Analysis is blind to the fundamentals and looks only at the trading data for BLDR stock — the real life supply and demand for the stock over time — and examines that data in different ways. One of those ways is to calculate a Simpe Moving Average ("SMA") by looking back a certain number of days. One of the most popular "longer look-backs" is the BLDR 200 day moving average ("BLDR 200 DMA"), while one of the most popular "shorter look-backs" is the BLDR 50 day moving average ("BLDR 50 DMA"). A chart showing both of these popular moving averages is shown on this page for Builders FirstSource. Comparing two moving averages against each other can be a useful visualization tool: by calculating the difference between the BLDR 200 DMA and the BLDR 50 DMA, we get a moving average convergence divergence indicator ("BLDR MACD"). The BLDR MACD chart, in conjunction with the chart of the moving averages, basically helps in visualizing how the moving averages are showing convergence (moving closer together), or divergence (moving farther apart). |
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Video: Technical Analysis