Dream Finders Homes Inc. (DFH) closed the most recent trading day at $16.98, moving -2.92% from the previous trading session. The stock trailed the S&P 500, which registered a daily loss of 0.34%. Elsewhere, the Dow saw a downswing of 0.94%, while the tech-heavy Nasdaq appreciated by 0.16%.
The homebuilder's shares have seen a decrease of 3.1% over the last month, not keeping up with the Construction sector's gain of 0.5% and the S&P 500's gain of 1.19%.
Market participants will be closely following the financial results of Dream Finders Homes Inc. in its upcoming release. The company is predicted to post an EPS of $0.62, indicating a 51.94% decline compared to the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $2.19 per share and a revenue of $0 million, demonstrating changes of -34.43% and 0%, respectively, from the preceding year.
Investors should also pay attention to any latest changes in analyst estimates for Dream Finders Homes Inc. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Dream Finders Homes Inc. currently has a Zacks Rank of #3 (Hold).
In the context of valuation, Dream Finders Homes Inc. is at present trading with a Forward P/E ratio of 7.64. Its industry sports an average Forward P/E of 12.14, so one might conclude that Dream Finders Homes Inc. is trading at a discount comparatively.
It is also worth noting that DFH currently has a PEG ratio of 4.96. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Building Products - Home Builders industry had an average PEG ratio of 1.72 as trading concluded yesterday.
The Building Products - Home Builders industry is part of the Construction sector. This group has a Zacks Industry Rank of 236, putting it in the bottom 4% 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.
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Dream Finders Homes, Inc. (DFH): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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