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Dream Finders Homes Inc. (DFH) closed the latest trading day at $24.66, indicating a +0.41% change from the previous session's end. The stock trailed the S&P 500, which registered a daily gain of 0.53%. Elsewhere, the Dow saw an upswing of 0.93%, while the tech-heavy Nasdaq appreciated by 0.22%.
Shares of the homebuilder have appreciated by 2.55% over the course of the past month, underperforming the Construction sector's gain of 4.6% and the S&P 500's gain of 2.69%.
Market participants will be closely following the financial results of Dream Finders Homes Inc. in its upcoming release. It is anticipated that the company will report an EPS of $1.15, marking a 15% rise compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $1.43 billion, showing a 25.47% escalation compared to the year-ago quarter.
Investors should also pay attention to any latest changes in 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 demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Currently, Dream Finders Homes Inc. is carrying a Zacks Rank of #4 (Sell).
In the context of valuation, Dream Finders Homes Inc. is at present trading with a Forward P/E ratio of 7.53. This signifies a discount in comparison to the average Forward P/E of 8.36 for its industry.
Also, we should mention that DFH has 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. The average PEG ratio for the Building Products - Home Builders industry stood at 0.85 at the close of the market yesterday.
The Building Products - Home Builders industry is part of the Construction sector. Currently, this industry holds a Zacks Industry Rank of 220, positioning it in the bottom 13% of all 250+ industries.