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15 July
Dream Finders Homes Inc. (DFH) Outperforms Broader Market: What You Need to Know

In the latest trading session, Dream Finders Homes Inc. (DFH) closed at $28.16, marking a +1.19% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.28%. At the same time, the Dow added 0.53%, and the tech-heavy Nasdaq gained 0.4%.

Heading into today, shares of the homebuilder had gained 3.19% over the past month, outpacing the Construction sector's gain of 0.98% and lagging the S&P 500's gain of 3.78% 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 predicted to post an EPS of $0.77, indicating a 18.46% growth compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $965.5 million, up 2.13% from the year-ago period.

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 might also notice recent changes to analyst estimates for Dream Finders Homes Inc. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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. Over the past month, the Zacks Consensus EPS estimate has remained steady. As of now, Dream Finders Homes Inc. holds a Zacks Rank of #3 (Hold).

Looking at valuation, Dream Finders Homes Inc. is presently trading at a Forward P/E ratio of 8.68. For comparison, its industry has an average Forward P/E of 8.94, which means Dream Finders Homes Inc. is trading at a discount to the group.

We can additionally observe that DFH currently boasts a PEG ratio of 0.58. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Building Products - Home Builders industry had an average PEG ratio of 0.85 as trading concluded yesterday.

The Building Products - Home Builders industry is part of the Construction sector. Currently, this industry holds a Zacks Industry Rank of 97, positioning it in the top 39% of all 250+ industries.

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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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.