Back to top

Image: Bigstock

Dream Finders Homes Inc. (DFH) Registers a Bigger Fall Than the Market: Important Facts to Note

Read MoreHide Full Article

Dream Finders Homes Inc. (DFH - Free Report) ended the recent trading session at $24.58, demonstrating a -4.17% change from the preceding day's closing price. This change lagged the S&P 500's daily loss of 0.38%. On the other hand, the Dow registered a loss of 0.2%, and the technology-centric Nasdaq decreased by 0.67%.

Coming into today, shares of the homebuilder had lost 17.23% in the past month. In that same time, the Construction sector lost 1.68%, while the S&P 500 gained 4.06%.

The investment community will be closely monitoring the performance of Dream Finders Homes Inc. in its forthcoming earnings report. On that day, Dream Finders Homes Inc. is projected to report earnings of $0.47 per share, which would represent a year-over-year decline of 32.86%. At the same time, our most recent consensus estimate is projecting a revenue of $1.14 billion, reflecting a 13.26% rise from the equivalent quarter last year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $2.39 per share and revenue of $4.66 billion, indicating changes of -28.44% and +4.63%, respectively, compared to the previous year.

Any recent changes to analyst estimates for Dream Finders Homes Inc. should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 30.73% lower. At present, Dream Finders Homes Inc. boasts a Zacks Rank of #5 (Strong Sell).

Investors should also note Dream Finders Homes Inc.'s current valuation metrics, including its Forward P/E ratio of 10.73. This represents a discount compared to its industry average Forward P/E of 11.95.

Meanwhile, DFH's PEG ratio is currently 6.97. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Building Products - Home Builders stocks are, on average, holding a PEG ratio of 2.62 based on yesterday's closing prices.

The Building Products - Home Builders industry is part of the Construction sector. This industry, currently bearing a Zacks Industry Rank of 214, finds itself in the bottom 14% echelons of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within 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.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Dream Finders Homes, Inc. (DFH) - free report >>

Published in