What Happened:
Shares of building services and installation company TopBuild (NYSE:BLD) fell 11.3% in the pre-market session after the company reported second-quarter earnings results. Its revenue unfortunately missed, and its EPS fell short of Wall Street's estimates. The results were pressured by weak volumes given higher interest rates, project delays, and supply constraints. Overall, this was a bad quarter for TopBuild.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy TopBuild? Access our full analysis report here, it's free.
What is the market telling us:
TopBuild's shares are very volatile and over the last year have had 15 moves greater than 5%. But moves this big are very rare even for TopBuild and that is indicating to us that this news had a significant impact on the market's perception of the business.
TopBuild is up 6.6% since the beginning of the year, but at $393.33 per share it is still trading 17.9% below its 52-week high of $479.09 from July 2024. Investors who bought $1,000 worth of TopBuild's shares 5 years ago would now be looking at an investment worth $4,454.
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