In the latest trading session, Dream Finders Homes Inc. (DFH) closed at $22.76, marking a -3.35% move from the previous day. This change lagged the S&P 500's daily loss of 1.13%. Elsewhere, the Dow saw a downswing of 1.79%, while the tech-heavy Nasdaq depreciated by 1.3%.
The homebuilder's shares have seen an increase of 1.55% over the last month, surpassing the Construction sector's gain of 0.19% and falling behind the S&P 500's gain of 3.55%.
Investors will be eagerly watching for the performance of Dream Finders Homes Inc. in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $0.66, reflecting a 18.52% decrease from the same quarter last year. 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.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $3.23 per share and a revenue of $4.76 billion, indicating changes of -3.29% and +7.03%, respectively, from the former year.
Investors should also take note of any recent adjustments to analyst estimates for Dream Finders Homes Inc. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 has moved 0.94% higher. Dream Finders Homes Inc. is currently a Zacks Rank #2 (Buy).
Digging into valuation, Dream Finders Homes Inc. currently has a Forward P/E ratio of 7.3. Its industry sports an average Forward P/E of 9.57, so one might conclude that Dream Finders Homes Inc. is trading at a discount comparatively.
Also, we should mention that DFH has a PEG ratio of 2.89. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The average PEG ratio for the Building Products - Home Builders industry stood at 1.8 at the close of the market yesterday.
The Building Products - Home Builders industry is part of the Construction sector. This group has a Zacks Industry Rank of 221, putting it in the bottom 11% 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.
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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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