In the latest trading session, Dream Finders Homes Inc. (DFH) closed at $26.94, marking a +1.09% move from the previous day. The stock's change was more than the S&P 500's daily gain of 0.32%. At the same time, the Dow added 0.53%, and the tech-heavy Nasdaq gained 0.26%.
The homebuilder's shares have seen an increase of 20.75% over the last month, surpassing the Construction sector's gain of 4.6% and the S&P 500's gain of 4.51%.
The investment community will be closely monitoring the performance of Dream Finders Homes Inc. in its forthcoming earnings report. In that report, analysts expect Dream Finders Homes Inc. to post earnings of $0.66 per share. This would mark a year-over-year decline of 18.52%. Our most recent consensus estimate is calling for quarterly revenue of $1.02 billion, down 3.72% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $3.23 per share and a revenue of $4.76 billion, representing changes of -3.29% and +7.03%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Dream Finders Homes Inc. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Right now, Dream Finders Homes Inc. possesses a Zacks Rank of #3 (Hold).
Digging into valuation, Dream Finders Homes Inc. currently has a Forward P/E ratio of 8.26. This expresses a discount compared to the average Forward P/E of 9.41 of its industry.
It's also important to note that DFH currently trades at a PEG ratio of 3.27. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Building Products - Home Builders was holding an average PEG ratio of 2.23 at yesterday's closing price.
The Building Products - Home Builders industry is part of the Construction sector. Currently, this industry holds a Zacks Industry Rank of 177, positioning it in the bottom 29% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Dream Finders Homes, Inc. (DFH): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
