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Dream Finders Homes Inc. (DFH) Outpaces Stock Market Gains: What You Should Know

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Dream Finders Homes Inc. (DFH - Free Report) closed the most recent trading day at $32.74, moving +1.93% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.61%. On the other hand, the Dow registered a gain of 0.97%, and the technology-centric Nasdaq increased by 0.33%.

Shares of the homebuilder have depreciated by 1.5% over the course of the past month, underperforming the Construction sector's gain of 5.21% and the S&P 500's gain of 5.36%.

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 is forecasted to report an EPS of $0.83, showcasing a 10.67% upward movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $1.13 billion, up 25.74% from the year-ago period.

For the full year, the Zacks Consensus Estimates are projecting earnings of $3.22 per share and revenue of $4.25 billion, which would represent changes of +15.41% and +13.27%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for Dream Finders Homes Inc. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Dream Finders Homes Inc. is currently a Zacks Rank #4 (Sell).

In the context of valuation, Dream Finders Homes Inc. is at present trading with a Forward P/E ratio of 9.99. This valuation marks no noticeable deviation compared to its industry's average Forward P/E of 9.99.

It's also important to note that DFH currently trades at a PEG ratio of 0.73. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Building Products - Home Builders industry currently had an average PEG ratio of 0.95 as of yesterday's close.

The Building Products - Home Builders industry is part of the Construction sector. This industry currently has a Zacks Industry Rank of 99, which puts it in the top 40% 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.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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