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Dream Finders Homes Inc. (DFH) Stock Sinks As Market Gains: Here's Why

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Dream Finders Homes Inc. (DFH - Free Report) closed the most recent trading day at $24.17, moving -1.23% from the previous trading session. This change lagged the S&P 500's 0.16% gain on the day. Elsewhere, the Dow saw an upswing of 0.01%, while the tech-heavy Nasdaq appreciated by 0.46%.

Coming into today, shares of the homebuilder had gained 16.52% in the past month. In that same time, the Construction sector gained 0.13%, while the S&P 500 lost 3.59%.

The investment community will be paying close attention to the earnings performance of Dream Finders Homes Inc. in its upcoming release. The company is expected to report EPS of $0.49, down 10.91% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $945.3 million, indicating a 14.19% growth compared to the corresponding quarter of the prior year.

For the full year, the Zacks Consensus Estimates project earnings of $3.14 per share and a revenue of $4.82 billion, demonstrating changes of -5.99% and +8.25%, respectively, from the preceding year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Dream Finders Homes Inc. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.97% upward. Dream Finders Homes Inc. presently features a Zacks Rank of #3 (Hold).

In the context of valuation, Dream Finders Homes Inc. is at present trading with a Forward P/E ratio of 7.81. This expresses a discount compared to the average Forward P/E of 8.59 of its industry.

Meanwhile, DFH's PEG ratio is currently 1.41. 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 0.98 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 222, which puts it in the bottom 12% 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.

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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