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Dream Finders Homes Inc. (DFH) Laps the Stock Market: Here's Why

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Dream Finders Homes Inc. (DFH - Free Report) closed at $22.60 in the latest trading session, marking a +1.12% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.39%. On the other hand, the Dow registered a gain of 0.71%, and the technology-centric Nasdaq increased by 0.2%.

The the stock of homebuilder has fallen by 1.28% in the past month, lagging the Construction sector's loss of 0.7% and the S&P 500's gain of 1.7%.

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 $1.13, reflecting a 13% increase from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $1.43 billion, reflecting a 25.47% rise from the equivalent quarter last year.

Investors should also note any recent changes to analyst estimates for Dream Finders Homes Inc. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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 past month, there's been a 4.75% fall in the Zacks Consensus EPS estimate. As of now, Dream Finders Homes Inc. holds a Zacks Rank of #5 (Strong Sell).

Valuation is also important, so investors should note that Dream Finders Homes Inc. has a Forward P/E ratio of 7.2 right now. This represents a discount compared to its industry's average Forward P/E of 8.33.

Investors should also note that DFH has a PEG ratio of 1.3 right now. 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 0.97.

The Building Products - Home Builders industry is part of the Construction sector. At present, this industry carries a Zacks Industry Rank of 246, placing it within the bottom 2% of over 250 industries.

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.

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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