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Here's Why Dream Finders Homes Inc. (DFH) Fell More Than Broader Market

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Dream Finders Homes Inc. (DFH - Free Report) closed at $32.01 in the latest trading session, marking a -1.63% move from the prior day. The stock's performance was behind the S&P 500's daily loss of 0.03%. Meanwhile, the Dow experienced a drop of 0.61%, and the technology-dominated Nasdaq saw an increase of 0.56%.

Heading into today, shares of the homebuilder had lost 5.93% over the past month, lagging the Construction sector's loss of 2.06% and the S&P 500's gain of 1.39% in that time.

Investors will be eagerly watching for the performance of Dream Finders Homes Inc. in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $0.83, reflecting a 10.67% increase from the same quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $1.13 billion, indicating a 25.74% increase compared to the same quarter of the previous year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $3.22 per share and a revenue of $4.25 billion, signifying shifts of +15.41% and +13.27%, respectively, from the last year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Dream Finders Homes Inc. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Dream Finders Homes Inc. is currently sporting a Zacks Rank of #4 (Sell).

Looking at valuation, Dream Finders Homes Inc. is presently trading at a Forward P/E ratio of 10.12. For comparison, its industry has an average Forward P/E of 10.1, which means Dream Finders Homes Inc. is trading at a premium to the group.

We can also see that DFH currently has a PEG ratio of 0.74. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Building Products - Home Builders industry had an average PEG ratio of 0.95.

The Building Products - Home Builders industry is part of the Construction sector. With its current Zacks Industry Rank of 71, this industry ranks in the top 29% of all industries, numbering over 250.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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