Topbuild stock hits 52-week low at $294.78 amid market shifts

In a challenging economic climate, Topbuild Corp (NYSE:BLD) stock has touched a 52-week low, dipping to $294.78. With a market capitalization of $8.59 billion and an overall "GREAT" financial health score according to InvestingPro, the company maintains strong fundamentals despite market pressures. This latest price level reflects a significant downturn from the company’s performance over the past year, with Topbuild experiencing a 1-year change of -26.8%. Investors are closely monitoring the stock as it navigates through market pressures, with the 52-week low marking a critical juncture for the company’s valuation and future outlook. The stock currently trades at a P/E ratio of 14.5, while management has been actively buying back shares - one of 13 key insights available on InvestingPro. The construction industry, where Topbuild holds a significant presence, has faced headwinds that have impacted the company’s stock price, leading to this notable decline. Despite these challenges, the company maintains annual revenues of $5.33 billion and solid liquidity, with current assets exceeding short-term obligations.

In other recent news, TopBuild Corp. reported its fourth-quarter earnings, surpassing analyst estimates with an adjusted earnings per share of $5.13, compared to the consensus of $5.03. Revenue increased by 2% year-over-year to $1.31 billion, aligning with expectations. However, the company’s 2025 revenue guidance disappointed, projecting between $5.05 billion and $5.35 billion, below the $5.465 billion consensus. The company also forecasted adjusted EBITDA for 2025 to be between $925 million and $1.075 billion.

Benchmark analysts responded by lowering TopBuild’s price target to $375 from $445, while maintaining a Buy rating, citing mixed performance and uncertain market conditions. They also revised their earnings estimates for the company, reducing them from $21.50 to $20.50 for the current year and from $23.00 to $21.00 for the following year. Similarly, Truist Securities cut its price target to $310 from $395, retaining a Hold rating due to anticipated EBITDA contraction and potential revenue stress in 2025.

Despite these challenges, TopBuild completed eight acquisitions in 2024, contributing $153.1 million in annual sales, and repurchased about 2.5 million shares for $966.4 million. The company also announced a new $1 billion share repurchase program, increasing its total buyback availability to $1.2 billion. These developments indicate ongoing strategic maneuvers amid the current industry landscape.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.