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Dream Finders Homes Inc. (DFH) Advances While Market Declines: Some Information for Investors

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Dream Finders Homes Inc. (DFH - Free Report) ended the recent trading session at $22.34, demonstrating a +1.09% change from the preceding day's closing price. The stock outperformed the S&P 500, which registered a daily loss of 0.22%. Elsewhere, the Dow saw an upswing of 0.08%, while the tech-heavy Nasdaq depreciated by 0.51%.

The stock of homebuilder has risen by 6.2% in the past month, leading the Construction sector's loss of 3.49% and the S&P 500's gain of 0.45%.

The investment community will be closely monitoring the performance of Dream Finders Homes Inc. in its forthcoming earnings report. The company's upcoming EPS is projected at $0.66, signifying a 18.52% drop compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $1.02 billion, down 3.72% from the prior-year quarter.

For the full year, the Zacks Consensus Estimates are projecting earnings of $3.23 per share and revenue of $4.76 billion, which would represent changes of -3.29% and +7.03%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for Dream Finders Homes Inc. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, 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, there's been no change in the Zacks Consensus EPS estimate. Dream Finders Homes Inc. is holding a Zacks Rank of #3 (Hold) right now.

From a valuation perspective, Dream Finders Homes Inc. is currently exchanging hands at a Forward P/E ratio of 6.85. This signifies a discount in comparison to the average Forward P/E of 9.15 for its industry.

Also, we should mention that DFH has a PEG ratio of 2.71. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Building Products - Home Builders was holding an average PEG ratio of 1.91 at yesterday's closing price.

The Building Products - Home Builders industry is part of the Construction sector. Currently, this industry holds a Zacks Industry Rank of 230, positioning it in the bottom 7% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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