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Dream Finders Homes Inc. (DFH) Rises But Trails Market: What Investors Should Know

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Dream Finders Homes Inc. (DFH - Free Report) closed at $24.13 in the latest trading session, marking a +0.08% move from the prior day. The stock lagged the S&P 500's daily gain of 1%. At the same time, the Dow added 0.78%, and the tech-heavy Nasdaq gained 1.51%.

Heading into today, shares of the homebuilder had gained 1.73% over the past month, outpacing the Construction sector's loss of 3.14% and the S&P 500's loss of 2.14% in that time.

Investors will be eagerly watching for the performance of Dream Finders Homes Inc. in its upcoming earnings disclosure. The company's upcoming EPS is projected at $1.15, signifying a 15% increase compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $1.43 billion, indicating a 25.47% increase compared to the same quarter of the previous year.

Investors should also note any recent changes to analyst estimates for Dream Finders Homes Inc. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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 remained unchanged. Currently, Dream Finders Homes Inc. is carrying a Zacks Rank of #4 (Sell).

Looking at valuation, Dream Finders Homes Inc. is presently trading at a Forward P/E ratio of 7.4. For comparison, its industry has an average Forward P/E of 8.31, which means Dream Finders Homes Inc. is trading at a discount to the group.

We can also see that DFH currently has a PEG ratio of 0.78. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Building Products - Home Builders industry currently had an average PEG ratio of 0.81 as of yesterday's close.

The Building Products - Home Builders industry is part of the Construction sector. Currently, this industry holds a Zacks Industry Rank of 204, positioning it in the bottom 19% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within 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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