Dream Finders Homes Inc. (DFH) ended the recent trading session at $26.39, demonstrating a -3.23% change from the preceding day's closing price. The stock trailed the S&P 500, which registered a daily loss of 0.13%. Meanwhile, the Dow lost 0.39%, and the Nasdaq, a tech-heavy index, added 0.15%.
The stock of homebuilder has risen by 1.87% in the past month, lagging the Construction sector's gain of 6.66% and the S&P 500's gain of 3.39%.
Market participants will be closely following the financial results of Dream Finders Homes Inc. in its upcoming release. In that report, analysts expect Dream Finders Homes Inc. to post earnings of $0.65 per share. This would mark a year-over-year decline of 19.75%. Alongside, our most recent consensus estimate is anticipating revenue of $1.02 billion, indicating a 3.72% downward movement from the same quarter last year.
DFH's full-year Zacks Consensus Estimates are calling for earnings of $3.45 per share and revenue of $4.76 billion. These results would represent year-over-year changes of +3.29% and +7.03%, respectively.
Investors might also notice recent changes to analyst estimates for Dream Finders Homes Inc. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 has moved 6.98% higher. Dream Finders Homes Inc. is currently a Zacks Rank #3 (Hold).
In terms of valuation, Dream Finders Homes Inc. is currently trading at a Forward P/E ratio of 7.9. This denotes a discount relative to the industry average Forward P/E of 10.22.
We can also see that DFH currently has a PEG ratio of 5.13. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. As of the close of trade yesterday, the Building Products - Home Builders industry held an average PEG ratio of 2.24.
The Building Products - Home Builders industry is part of the Construction sector. This industry currently has a Zacks Industry Rank of 216, which puts it in the bottom 13% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow DFH in the coming trading sessions, be sure to utilize Zacks.com.
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
