Dream Finders Homes Inc. (DFH) shares ended the last trading session 5.1% higher at $22.40. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 14.5% loss over the past four weeks.
Homebuilding stocks like Dream Finders Homes surged on Friday as investors cheered a favorable policy outcome for the housing industry. Tariff exceptions for Canada and Mexico "amount to a major win" for homebuilders, the National Association of Home Builders said in a statement.
This homebuilder is expected to post quarterly earnings of $0.49 per share in its upcoming report, which represents a year-over-year change of -10.9%. Revenues are expected to be $945.3 million, up 14.2% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Dream Finders Homes, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on DFH going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Dream Finders Homes is a member of the Zacks Building Products - Home Builders industry. One other stock in the same industry, Taylor Morrison Home (TMHC), finished the last trading session 3.2% higher at $59.42. TMHC has returned -7.6% over the past month.
For Taylor Morrison
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 Report Taylor Morrison Home Corporation (TMHC): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
