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Dream Finders Homes Inc. (DFH) Stock Slides as Market Rises: Facts to Know Before You Trade

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Dream Finders Homes Inc. (DFH - Free Report) closed at $29.64 in the latest trading session, marking a -4.36% move from the prior day. This change lagged the S&P 500's daily gain of 0.27%. At the same time, the Dow added 0.43%, and the tech-heavy Nasdaq gained 0.37%.

The homebuilder's stock has climbed by 23.51% in the past month, exceeding the Construction sector's gain of 4.79% and the S&P 500's gain of 1.85%.

Investors will be eagerly watching for 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 $0.94 per share, which would represent year-over-year growth of 34.29%. In the meantime, our current consensus estimate forecasts the revenue to be $1.25 billion, indicating a 24.1% growth compared to the corresponding quarter of the prior year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $3.45 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. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Dream Finders Homes Inc. is holding a Zacks Rank of #4 (Sell) right now.

Investors should also note Dream Finders Homes Inc.'s current valuation metrics, including its Forward P/E ratio of 8.98. Its industry sports an average Forward P/E of 11.93, 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 5.83. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. By the end of yesterday's trading, the Building Products - Home Builders industry had an average PEG ratio of 2.69.

The Building Products - Home Builders industry is part of the Construction sector. This industry currently has a Zacks Industry Rank of 229, which puts it in the bottom 8% 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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