Dream Finders Homes Inc. (DFH) closed the most recent trading day at $17.95, moving -2.39% from the previous trading session. This move lagged the S&P 500's daily gain of 0.54%. At the same time, the Dow added 1.05%, and the tech-heavy Nasdaq gained 0.56%.
The homebuilder's shares have seen an increase of 7.29% over the last month, surpassing the Construction sector's gain of 4.9% and the S&P 500's gain of 0.74%.
Analysts and investors alike will be keeping a close eye on the performance of Dream Finders Homes Inc. in its upcoming earnings disclosure. On that day, Dream Finders Homes Inc. is projected to report earnings of $0.62 per share, which would represent a year-over-year decline of 51.94%.
For the full year, the Zacks Consensus Estimates are projecting earnings of $2.19 per share and revenue of $0 million, which would represent changes of -34.43% and 0%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Dream Finders Homes Inc. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 11.35% downward. At present, Dream Finders Homes Inc. boasts a Zacks Rank of #5 (Strong Sell).
In the context of valuation, Dream Finders Homes Inc. is at present trading with a Forward P/E ratio of 9.06. Its industry sports an average Forward P/E of 13.57, so one might conclude that Dream Finders Homes Inc. is trading at a discount comparatively.
It's also important to note that DFH currently trades at a PEG ratio of 5.88. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. DFH's industry had an average PEG ratio of 1.82 as of yesterday's close.
The Building Products - Home Builders industry is part of the Construction sector. With its current Zacks Industry Rank of 242, this industry ranks in the bottom 2% of all industries, numbering over 250.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
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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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