It has been a rough few months to be invested in homebuilder stocks. This is especially true for Sun Belt-focused builder Dream Finders Homes (DFH -3.18%), which is down by about 50% from its 52-week high.To be sure, the business itself continues to perform quite well. In the most recent quarterly report, Dream Finders' homebuilding revenue increased 10% year over year, margins remained strong, and net new orders increased by 9%. Plus, Dream Finders reported a backlog of about $2 billion worth of sold homes ...

Company Overview - Dream Finders Homes Inc. (DFH) closed at $21.98, reflecting a -0.18% change from the previous day, underperforming the S&P 500 which gained 0.24% [1] - The stock has decreased by 9.12% over the past month, compared to a 4.2% loss in the Construction sector and a 2.37% gain in the S&P 500 [1] Financial Performance - The upcoming earnings per share (EPS) for Dream Finders Homes Inc. is projected at $1.13, indicating a 13% increase from the same quarter last year [2] - Quarterly revenue is expected to reach $1.43 billion, representing a 25.47% increase from the previous year [2] Analyst Projections - Recent shifts in analyst projections for Dream Finders Homes Inc. should be monitored, as positive revisions indicate optimism regarding the company's business and profitability [3] - Over the past month, there has been a 4.75% decline in the Zacks Consensus EPS estimate, leading to a current Zacks Rank of 5 (Strong Sell) for the company [5] Valuation Metrics - Dream Finders Homes Inc. has a Forward P/E ratio of 7.09, which is lower than the industry average Forward P/E of 8.27, suggesting a valuation discount [6] - The company has a PEG ratio of 1.28, compared to the Building Products - Home Builders industry average PEG ratio of 0.95 [7] Industry Context - The Building Products - Home Builders industry is part of the Construction sector and currently holds a Zacks Industry Rank of 245, placing it in the bottom 3% of over 250 industries [8] - The Zacks Industry Rank indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [8]

Group 1 - Dream Finders Homes Inc. (DFH) closed at $22.60, reflecting a +1.12% change from the previous day, outperforming the S&P 500's gain of 0.39% [1] - The stock has decreased by 1.28% over the past month, underperforming the Construction sector's loss of 0.7% and the S&P 500's gain of 1.7% [1] Group 2 - The upcoming earnings disclosure for Dream Finders Homes Inc. is anticipated, with projected earnings per share (EPS) of $1.13, indicating a 13% increase year-over-year [2] - Revenue is expected to reach $1.43 billion, reflecting a 25.47% rise from the same quarter last year [2] Group 3 - Recent changes to analyst estimates for Dream Finders Homes Inc. are important, as positive revisions indicate analyst optimism regarding the company's business and profitability [3] - The Zacks Rank system, which assesses estimate changes, currently ranks Dream Finders Homes Inc. as 5 (Strong Sell), following a 4.75% decline in the Zacks Consensus EPS estimate over the past month [4][5] Group 4 - The Forward P/E ratio for Dream Finders Homes Inc. is 7.2, which is lower than the industry average Forward P/E of 8.33, indicating a valuation discount [6] - The company has a PEG ratio of 1.3, compared to the Building Products - Home Builders industry's average PEG ratio of 0.97 [7] Group 5 - The Building Products - Home Builders industry, part of the Construction sector, has a Zacks Industry Rank of 246, placing it in the bottom 2% of over 250 industries [8]

Group 1 - The homebuilding industry is viewed positively, with recent investments made in a specific company, Hovnanian [1] - Crude Value Insights provides an investment service focused on oil and natural gas, emphasizing cash flow and growth potential [1] Group 2 - Subscribers have access to a stock model account with over 50 stocks, detailed cash flow analyses of exploration and production firms, and live discussions about the sector [2] - A promotional offer is available for a two-week free trial to engage with oil and gas investment opportunities [3]

Core Insights - Dream Finders Homes, Inc. (DFH) has acquired Liberty Communities, LLC's core homebuilding operations and assets, enhancing its presence in the Atlanta and Greenville markets [1][3] - The acquisition includes Liberty's pre-engineered panel and truss, and building component import businesses, which are expected to provide cost efficiencies and support growth [1][3][5] Acquisition Details - The purchase was funded through available cash and borrowings from DFH's existing senior unsecured revolving credit facility, and DFH settled Liberty's vertical lines of credit at closing [2] - This strategic acquisition positions DFH to become a leading player in the Atlanta market, which is the sixth largest homebuilding market in the U.S. with over 27,000 estimated single-family permits in 2024 [4] Market Position and Growth Strategy - DFH has strategically leveraged acquisitions to enter high-growth markets such as Texas, Florida, and the Carolinas, resulting in substantial revenue growth from $744 million in 2019 to $1,924 million in 2021 [6] - The acquisition of Jet HomeLoans in July 2024 marked DFH's sixth acquisition in five years, contributing $16 million in revenues and $7 million in pre-tax profit during Q3 2024 [7] Stock Performance - DFH's shares have declined by 22.9% over the past three months, compared to a 15.9% decline in the Zacks Building Products - Home Builders industry [10] - Despite facing risks from fluctuating mortgage rates and macroeconomic challenges, DFH's focus on high-demand markets and entry-level housing positions it well for future growth [10]

Group 1 - Dream Finders Homes Inc. (DFH) closed at $24.13, with a slight increase of +0.08% from the previous day, underperforming the S&P 500's daily gain of 1% [1] - Over the past month, DFH shares have increased by 1.73%, outperforming the Construction sector's decline of 3.14% and the S&P 500's decline of 2.14% [1] Group 2 - The upcoming earnings disclosure for DFH is anticipated, with projected EPS of $1.15, reflecting a 15% increase year-over-year, and revenue expected to be $1.43 billion, indicating a 25.47% increase year-over-year [2] - Recent changes to analyst estimates for DFH are being monitored, as positive revisions typically indicate a favorable business outlook [3] Group 3 - The Zacks Rank system, which assesses changes in estimates, currently ranks DFH at 4 (Sell), with the consensus EPS estimate remaining unchanged over the last 30 days [5] - DFH is trading at a Forward P/E ratio of 7.4, which is below the industry average of 8.31, indicating a discount compared to its peers [6] Group 4 - DFH has a PEG ratio of 0.78, which is lower than the industry average PEG ratio of 0.81, suggesting a favorable valuation in terms of anticipated earnings growth [7] - The Building Products - Home Builders industry, which includes DFH, holds a Zacks Industry Rank of 204, placing it in the bottom 19% of over 250 industries [8]

Company Performance - Dream Finders Homes Inc. (DFH) closed at $24.11, showing a slight increase of +0.04% from the previous session, outperforming the S&P 500's decline of 0.21% [1] - Over the last month, DFH shares have decreased by 5.04%, underperforming the Construction sector's loss of 4.36% and the S&P 500's loss of 1.56% [1] Upcoming Earnings - The company is expected to report an EPS of $1.15, which represents a 15% increase from the same quarter last year [2] - Revenue projections for the upcoming earnings report are estimated at $1.43 billion, reflecting a 25.47% rise compared to the equivalent quarter last year [2] Analyst Estimates - Recent adjustments to analyst estimates for DFH are important as they reflect short-term business trends, with positive revisions indicating a favorable outlook on the company's health and profitability [3] - The consensus EPS projection for DFH has remained stagnant over the past 30 days, and the company currently holds a Zacks Rank of 4 (Sell) [5] Valuation Metrics - DFH is trading with a Forward P/E ratio of 7.39, which is lower than the industry average Forward P/E of 8.24, suggesting that DFH is trading at a discount [6] - The company has a PEG ratio of 0.78, which is comparable to the industry average PEG ratio of 0.8, indicating a favorable valuation in terms of projected earnings growth [7] Industry Context - The Building Products - Home Builders industry, to which DFH belongs, currently has a Zacks Industry Rank of 189, placing it in the bottom 25% of over 250 industries [7] - The Zacks Industry Rank measures the strength of industry groups, with the top 50% rated industries historically outperforming the bottom half by a factor of 2 to 1 [8]

Group 1: ZIM Integrated Shipping Services - ZIM Integrated Shipping Services is a global container liner shipping company with a Zacks Rank 1 (Strong Buy) [1] - The Zacks Consensus Estimate for ZIM's current year earnings has increased by 35.7% over the last 60 days [1] - ZIM has a price-to-earnings ratio (P/E) of 1.19, significantly lower than the industry average of 9.40, and possesses a Value Score of A [2] Group 2: McKesson - McKesson is a healthcare services and information technology company that distributes branded and generic pharmaceutical drugs globally, also carrying a Zacks Rank 1 [2] - The Zacks Consensus Estimate for McKesson's current year earnings has increased by 1.3% over the last 60 days [2] - McKesson has a price-to-earnings ratio (P/E) of 17.61, compared to the industry average of 33.40, and possesses a Value Score of A [3] Group 3: Dream Finders Homes - Dream Finders Homes is a homebuilding company operating primarily in several U.S. states, also holding a Zacks Rank 1 [3] - The Zacks Consensus Estimate for Dream Finders Homes' current year earnings has increased by 4% over the last 60 days [3] - Dream Finders Homes has a price-to-earnings ratio (P/E) of 8.58, lower than the industry average of 10.20, and possesses a Value Score of B [4]

Here are three stocks with buy rank and strong value characteristics for investors to consider today, December 11:Premier, Inc. (PINC) : This healthcare improvement company carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 5.7% over the last 60 days.Premier has a price-to-earnings ratio (P/E) of 16.92 compared with 25.22 for the S&P. The company possesses a Value Scoreof A.DXP Enterprises, Inc. (DXPE) : This industrial distribution company carri ...

Our Purpose: To make the world smarter, happier, and richer. Founded in 1993, The Motley Fool is a financial services company dedicated to making the world smarter, happier, and richer. The Motley Fool reaches millions of people every month through our premium investing solutions, free guidance and market analysis on Fool.com, personal finance education, top-rated podcasts, and non-profit The Motley Fool Foundation. ...