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

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In the latest close session, Dream Finders Homes Inc. (DFH - Free Report) was down 2.98% at $26.70. The stock fell short of the S&P 500, which registered a gain of 0.44% for the day. Elsewhere, the Dow gained 0.14%, while the tech-heavy Nasdaq added 0.7%.

Shares of the homebuilder witnessed a loss of 7.22% over the previous month, trailing the performance of the Construction sector with its loss of 0.58%, and the S&P 500's gain of 4.03%.

The investment community will be paying close attention to the earnings performance of Dream Finders Homes Inc. in its upcoming release. The company is predicted to post an EPS of $0.47, indicating a 32.86% decline compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.14 billion, up 13.26% from the year-ago period.

For the full year, the Zacks Consensus Estimates project earnings of $2.39 per share and a revenue of $4.66 billion, demonstrating changes of -28.44% and +4.63%, respectively, from the preceding year.

It is also important to note the recent changes to analyst estimates for Dream Finders Homes Inc. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 30.73% decrease. Dream Finders Homes Inc. presently features a Zacks Rank of #5 (Strong Sell).

In the context of valuation, Dream Finders Homes Inc. is at present trading with a Forward P/E ratio of 11.52. This expresses a discount compared to the average Forward P/E of 11.63 of its industry.

Investors should also note that DFH has a PEG ratio of 7.48 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. By the end of yesterday's trading, the Building Products - Home Builders industry had an average PEG ratio of 2.53.

The Building Products - Home Builders industry is part of the Construction sector. This industry, currently bearing a Zacks Industry Rank of 228, finds itself in the bottom 8% echelons of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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