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Dream Finders Homes Inc. (DFH) Suffers a Larger Drop Than the General Market: Key Insights

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The latest trading session saw Dream Finders Homes Inc. (DFH - Free Report) ending at $34.19, denoting a -0.32% adjustment from its last day's close. The stock fell short of the S&P 500, which registered a loss of 0.22% for the day. At the same time, the Dow added 0.06%, and the tech-heavy Nasdaq lost 0.52%.

Shares of the homebuilder witnessed a loss of 11.48% over the previous month, trailing the performance of the Construction sector with its loss of 3.79% and the S&P 500's loss of 1.66%.

Investors will be eagerly watching for the performance of Dream Finders Homes Inc. in its upcoming earnings disclosure. In that report, analysts expect Dream Finders Homes Inc. to post earnings of $0.70 per share. This would mark year-over-year growth of 55.56%. In the meantime, our current consensus estimate forecasts the revenue to be $934.2 million, indicating a 21.42% growth compared to the corresponding quarter of the prior year.

DFH's full-year Zacks Consensus Estimates are calling for earnings of $3.45 per share and revenue of $4.34 billion. These results would represent year-over-year changes of +23.66% and +15.74%, respectively.

It is also important to note the recent changes to analyst estimates for Dream Finders Homes Inc. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 9.87% higher. Dream Finders Homes Inc. currently has a Zacks Rank of #1 (Strong Buy).

Looking at valuation, Dream Finders Homes Inc. is presently trading at a Forward P/E ratio of 9.94. This signifies a premium in comparison to the average Forward P/E of 9.01 for its industry.

Investors should also note that DFH has a PEG ratio of 0.92 right now. 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. The Building Products - Home Builders industry had an average PEG ratio of 0.82 as trading concluded yesterday.

The Building Products - Home Builders industry is part of the Construction sector. Currently, this industry holds a Zacks Industry Rank of 36, positioning it in the top 15% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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