In the latest trading session, Dream Finders Homes Inc. (DFH) closed at $26.12, marking a -2.68% move from the previous day. The stock's performance was behind the S&P 500's daily gain of 0.83%. Elsewhere, the Dow saw an upswing of 0.77%, while the tech-heavy Nasdaq appreciated by 1.02%.
Heading into today, shares of the homebuilder had gained 21.67% over the past month, outpacing the Construction sector's gain of 7.94% and the S&P 500's gain of 4.99%.
Analysts and investors alike will be keeping a close eye on the performance of Dream Finders Homes Inc. in its upcoming earnings disclosure. The company's upcoming EPS is projected at $0.66, signifying a 18.52% drop compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $1.02 billion, indicating a 3.72% decline compared to the corresponding quarter of the prior year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $3.23 per share and revenue of $4.76 billion, indicating changes of -3.29% and +7.03%, respectively, compared to the previous year.
Investors should also take note of any recent adjustments 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, we can interpret positive estimate revisions as a good sign for the business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Dream Finders Homes Inc. presently features a Zacks Rank of #3 (Hold).
With respect to valuation, Dream Finders Homes Inc. is currently being traded at a Forward P/E ratio of 8.32. Its industry sports an average Forward P/E of 10.68, 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 3.29. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Building Products - Home Builders industry held an average PEG ratio of 2.27.
The Building Products - Home Builders industry is part of the Construction sector. This industry currently has a Zacks Industry Rank of 210, which puts it in the bottom 15% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding 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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