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07 June
Why Dream Finders Homes Inc. (DFH) Dipped More Than Broader Market Today

Dream Finders Homes Inc. (DFH) ended the recent trading session at $26.42, demonstrating a -1.71% swing from the preceding day's closing price. The stock's change was less than the S&P 500's daily loss of 0.11%. Meanwhile, the Dow experienced a drop of 0.22%, and the technology-dominated Nasdaq saw a decrease of 0.23%.

Heading into today, shares of the homebuilder had lost 11.87% over the past month, lagging the Construction sector's loss of 3.22% and the S&P 500's gain of 3.51% in that time.

Market participants will be closely following the financial results of Dream Finders Homes Inc. in its upcoming release. The company is predicted to post an EPS of $0.77, indicating a 18.46% growth compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $965.5 million, indicating a 2.13% increase compared to the same quarter of the previous year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $3.21 per share and a revenue of $4.14 billion, indicating changes of +15.05% and +10.33%, respectively, from the former year.

Investors should also take note of any recent adjustments to analyst estimates for Dream Finders Homes Inc. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Currently, Dream Finders Homes Inc. is carrying a Zacks Rank of #3 (Hold).

Investors should also note Dream Finders Homes Inc.'s current valuation metrics, including its Forward P/E ratio of 8.39. This valuation marks a discount compared to its industry's average Forward P/E of 8.63.

Meanwhile, DFH's PEG ratio is currently 0.56. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Building Products - Home Builders industry currently had an average PEG ratio of 0.84 as of yesterday's close.

The Building Products - Home Builders industry is part of the Construction sector. With its current Zacks Industry Rank of 27, this industry ranks in the top 11% of all industries, numbering over 250.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow DFH in the coming trading sessions, be sure to utilize Zacks.com.

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