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

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Dream Finders Homes Inc. (DFH - Free Report) closed at $25.92 in the latest trading session, marking a -1.26% move from the prior day. The stock trailed the S&P 500, which registered a daily gain of 0.41%. Elsewhere, the Dow gained 0.18%, while the tech-heavy Nasdaq added 0.31%.

Coming into today, shares of the homebuilder had lost 5.54% in the past month. In that same time, the Construction sector lost 0.35%, while the S&P 500 gained 3.15%.

Market participants will be closely following the financial results 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. Our most recent consensus estimate is calling for quarterly revenue of $1.14 billion, up 13.26% from the year-ago period.

For the full year, the Zacks Consensus Estimates are projecting earnings of $2.39 per share and revenue of $4.66 billion, which would represent changes of -28.44% and +4.63%, respectively, from the prior year.

Investors should also take note of any recent adjustments to analyst estimates for Dream Finders Homes Inc. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, 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. Over the last 30 days, the Zacks Consensus EPS estimate has moved 30.73% lower. Dream Finders Homes Inc. is currently sporting a Zacks Rank of #5 (Strong Sell).

Looking at valuation, Dream Finders Homes Inc. is presently trading at a Forward P/E ratio of 10.98. This signifies a discount in comparison to the average Forward P/E of 11.79 for its industry.

It is also worth noting that DFH currently has a PEG ratio of 7.13. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. DFH's industry had an average PEG ratio of 2.62 as of yesterday's close.

The Building Products - Home Builders industry is part of the Construction sector. This group has a Zacks Industry Rank of 232, putting 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 follow all of these stock-moving metrics, and many more, on Zacks.com.


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