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Dream Finders Homes Inc. (DFH) Beats Stock Market Upswing: What Investors Need to Know

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In the latest trading session, Dream Finders Homes Inc. (DFH - Free Report) closed at $34.87, marking a +1.6% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.13%. Meanwhile, the Dow experienced a rise of 0.55%, and the technology-dominated Nasdaq saw a decrease of 0.52%.

Shares of the homebuilder witnessed a gain of 19.25% over the previous month, beating the performance of the Construction sector with its gain of 5.71% and the S&P 500's gain of 3.67%.

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 $0.83 per share, which would represent year-over-year growth of 10.67%. Simultaneously, our latest consensus estimate expects the revenue to be $1.13 billion, showing a 25.74% escalation compared to the year-ago quarter.

DFH's full-year Zacks Consensus Estimates are calling for earnings of $3.22 per share and revenue of $4.25 billion. These results would represent year-over-year changes of +15.41% and +13.27%, respectively.

It's also important for investors to be aware of any recent modifications to analyst estimates for Dream Finders Homes Inc. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 remained steady. Currently, Dream Finders Homes Inc. is carrying a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Dream Finders Homes Inc. has a Forward P/E ratio of 10.68 right now. This expresses a premium compared to the average Forward P/E of 10.26 of its industry.

It's also important to note that DFH currently trades at a PEG ratio of 0.76. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. As the market closed yesterday, the Building Products - Home Builders industry was having an average PEG ratio of 1.01.

The Building Products - Home Builders industry is part of the Construction sector. This industry currently has a Zacks Industry Rank of 25, which puts it in the top 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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