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

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In the latest trading session, Dream Finders Homes Inc. (DFH - Free Report) closed at $24.24, marking a -1.38% move from the previous day. This move lagged the S&P 500's daily gain of 0.58%.

Shares of the homebuilder witnessed a loss of 17.07% over the previous month, trailing the performance of the Construction sector with its loss of 3.22%, and the S&P 500's gain of 3.68%.

Analysts and investors alike will be keeping a close eye on the performance of Dream Finders Homes Inc. in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $0.47, reflecting a 32.86% decrease from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $1.14 billion, showing a 13.26% escalation compared to the year-ago quarter.

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.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Dream Finders Homes Inc. These latest adjustments often mirror the shifting dynamics of short-term business patterns. 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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 30.73% lower within the past month. Currently, Dream Finders Homes Inc. is carrying 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 10.28. This denotes a discount relative to the industry average Forward P/E of 11.43.

Meanwhile, DFH's PEG ratio is currently 6.68. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Building Products - Home Builders industry had an average PEG ratio of 2.46 as trading concluded yesterday.

The Building Products - Home Builders industry is part of the Construction sector. Currently, this industry holds a Zacks Industry Rank of 223, positioning it in the bottom 10% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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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