Dream Finders Homes Inc. (DFH – Free Report) closed the most recent trading day at $22.42, moving -0.62% from the previous trading session. The stock fell short of the S&P 500, which registered a gain of 0.38% for the day. Meanwhile, the Dow lost 0.03%, and the Nasdaq, a tech-heavy index, added 0.87%.
Shares of the homebuilder have depreciated by 1.23% over the course of the past month, outperforming the Construction sector’s loss of 4.81% and the S&P 500’s loss of 5.59%.
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’s earnings per share (EPS) are projected to be $0.49, reflecting a 10.91% decrease from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $945.3 million, showing a 14.19% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $3.14 per share and revenue of $4.82 billion, which would represent changes of -5.99% and +8.25%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for Dream Finders Homes Inc. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts’ confidence in the company’s business performance and profit potential.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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 remained stagnant. Right now, Dream Finders Homes Inc. possesses a Zacks Rank of #2 (Buy).
From a valuation perspective, Dream Finders Homes Inc. is currently exchanging hands at a Forward P/E ratio of 7.2. Its industry sports an average Forward P/E of 8.14, so one might conclude that Dream Finders Homes Inc. is trading at a discount comparatively.
We can also see that DFH currently has a PEG ratio of 1.3. 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 0.96 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 226, which puts it in the bottom 10% 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.
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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