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

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Dream Finders Homes Inc. (DFH - Free Report) ended the recent trading session at $34.30, demonstrating a -1.89% swing from the preceding day's closing price. This move lagged the S&P 500's daily gain of 0.9%. Elsewhere, the Dow saw an upswing of 0.81%, while the tech-heavy Nasdaq appreciated by 1.22%.

Heading into today, shares of the homebuilder had gained 15.88% over the past month, outpacing the Construction sector's gain of 6.92% and the S&P 500's gain of 3.15% in that time.

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. Meanwhile, our latest consensus estimate is calling for revenue of $1.13 billion, up 25.74% from the prior-year quarter.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $3.22 per share and a revenue of $4.25 billion, indicating changes of +15.41% and +13.27%, respectively, from the former year.

It is also important to note the 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.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.

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. Within the past 30 days, our consensus EPS projection remained stagnant. At present, Dream Finders Homes Inc. boasts a Zacks Rank of #4 (Sell).

With respect to valuation, Dream Finders Homes Inc. is currently being traded at a Forward P/E ratio of 10.87. This signifies a premium in comparison to the average Forward P/E of 10.44 for its industry.

It's also important to note that DFH currently trades at a PEG ratio of 0.79. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. By the end of yesterday's trading, the Building Products - Home Builders industry had an average PEG ratio of 0.98.

The Building Products - Home Builders industry is part of the Construction sector. This industry currently has a Zacks Industry Rank of 150, which puts it in the bottom 41% of all 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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