Why BlueLinx Holdings Inc. (BXC) Stock is Down Almost -6.55% Today

What just happened? BlueLinx Holdings Inc. (NYSE:BXC) stock value has plummeted by nearly -6.55% or (-1.82 points) to $25.98 from its previous close of $27.8. Does this decline mean it the best stock to buy right now? The shares seem to have an active trading volume day with a reported 98077 contracts so far this session. BXC shares had a relatively better volume day versus average trading capacity of 144.3 thousand shares, but with a 9.04 million float and a 7.42% run over a week, it’s definitely worth keeping an eye on. The one year price forecast for BXC stock indicates that the average analyst price target is $28 per share. This means the stock has a potential increase of 7.78% from where the BXC share price has been trading recently which is between $27.43 and $28.0999. There are some brokerage firms that offer lower targets than the average, with one of them, even setting their price target at $28.

The most recent news story about the stock that appeared in Yahoo Finance‘s news section was titled “Wood Industry Outlook Hit by Low Lumber Prices, Soft Housing” and dated August 22, 2019.

During the recent trading session for BlueLinx Holdings Inc. (NYSE:BXC), the company witnessed their stock drop by $-0.01 over a week and surge $6.31 from the price 20 days ago. When compared to their established 52-week high of $42.72, the high they recorded in their recent session happens to be lower. Their established 52-week high was attained by the company on 09/13/18. The recent low of $17.88 stood for a -39.18% since 07/05/19, a data which is good for most investors who are looking to take advantage of the stock’s recent rise. A beta of 1.67 is also allocated to the stock. Since the beta is greater than one, it implies that the stock is more volatile than the market, a data that traders are keeping close attention to.

Looking at the current readings for BlueLinx Holdings Inc., the two-week RSI stands at 62.51. This figure suggests that BXC stock, for now, is neutral, meaning that the shares are stable in terms of price movement. The stochastic readings, on the other hand, based on the current BXC readings is similarly very revealing as it has a stochastic reading of 86.87% at this stage. This figure means that BXC share price today is being oversold.

Technical chart claims that BlueLinx Holdings Inc. (BXC) would settle between $28.12/share to $28.45/share level. However, if the stock price goes below the $27.45 mark, then the market for BlueLinx Holdings Inc. becomes much weaker. If that happens, the stock price might even plunge as low as $27.11 for its downside target. The stock is currently in the green zone of MACD, with the indicator reading 0.58. Traders are always alerted for the move of a stock above or below the zero line due to the fact that the reading is an indicator of the position of the short-term average relative to the long-term average. If the MACD is above the zero line, then the short-term average relative is above that of the long-term average, thus implying an upward momentum. Vice versa is the case if the MACD is below the zero line.

Analysts at B. Riley FBR, assumed coverage of BXC assigning Buy rating, according to their opinion released on August 08. DA Davidson analysts have lowered their rating of BlueLinx Holdings Inc. (NYSE:BXC) stock from Buy to Neutral in a separate flash note issued to investors on September 08. Analysts at Sun Trust Rbsn Humphrey lowered the stock to a Neutral call from its previous Buy recommendation, in a research note that dated back to November 05.

Moving on, BXC stock price is currently trading at 17.37X forward 12-month Consensus EPS estimates, and its P/S ratio is 0.06 while for the average stock in the same group, the multiple is 1.21.

BlueLinx Holdings Inc. (BXC)’s current-quarter revenues are projected to climb by nearly -17.15% to hit $712300, based on current Zacks Consensus Estimate. The firm’s full-year revenues are expected to expand by over -6.46% from $2.86 billion to a noteworthy $2.68 billion. At the other end of the current quarter income statement, BlueLinx Holdings Inc. is expected to see its adjusted earnings surge by roughly 144.86% to hit $0.48 per share. For the fiscal year, BXC’s earnings are projected to climb by roughly 116.3% to hit $0.59 per share.