10 Best-Performing S&P 500 Stocks in the Last 3 Years

8. Builders Firstsource, Inc. (NYSE:BLDR)

3Y CAGR: 51.02%

Builders Firstsource, Inc. (NYSE:BLDR) is the manufacturer and the largest supplier of building products, prefabricated components and services in the US. A major part of BFS’s growth strategy has been through acquisitions. For example, the merger with BMC Stock Holdings in the start of 2021 was transformative to its growth and profitability.

Looking ahead, the company is well-positioned, as FED’s September rate cut, with more to come, are likely to improve demand for single and multi-family homes.

This is what ClearBridge Growth Strategy said about BLDR in their Q3, 2024 investor letter:

“The Strategy has historically been underweight industrials and consumer discretionary sectors, but positioning moves over the last year have helped close these gaps and provided several new contributors this quarter. Builders FirstSource, Inc. (NYSE:BLDR), a supplier of building products, rose strongly in the quarter on optimism that rate cuts will improve demand for single family and eventually multifamily residential construction. Cintas, a uniform rental and facilities services company, put up solid results as cross-selling and margin expansion efforts continue to bear fruit. Starbucks also provided a lift as the stock reacted positively to the naming of a new CEO, industry veteran Brian Niccol, who is expected to reinvigorate operations.”