Builders FirstSource, Inc. (BLDR)

Homebuilding sector may be affected by seasonality: Analyst

Wedbush Securities downgraded multiple homebuilding stocks including Lennar (LEN), D.R. Horton (DHI), and LGI Homes (LGIH), claiming they could see seasonal price declines. Despite the downgrade, they maintained their price targets for all five stocks. Wedbush Securities Equity Research SVP Jay McCanless — the analyst behind the call — joins Market Domination to break down the reasoning and take a look at the homebuilding sector and how it may play out going forward. In terms of which of the stocks he downgraded might stand above the rest, McCanless claims: "Not on the homebuilder side but we are favorable on the product side for a company called Builders FirstSource (BLDR). They are the market leader right now in terms of lumber and building product sales, and we think that unit volumes of single-family homes, whether for rent or for sale, are going to be up in '24 versus '23 and we think Builders FirstSource is positioned to meet that demand. We also think they're going to be growing in the repair and remodel category which we have a favorable outlook for that space too." For more expert insight and the latest market action, click here to watch this full episode of Market Domination. Editor's note: This article was written by Nicholas Jacobino