TPH - Dream Finders Homes: Despite Its Meteoric Rise Shares Deserve Even More Upside

2024-05-19 09:13:19 ET

Summary

• Dream Finders Homes has experienced significant growth in revenue and profitability over the past few years.
• The company has seen improvements in its cancellation rate and net new orders, indicating a positive trend.
• Dream Finders Homes recently acquired Crescent Homes, which will contribute to its growth in 2024.

Over the last 24 months, my thought process regarding the homebuilding industry has changed significantly. In late 2022 and early 2023, I felt bearish about the industry in the near term because of high interest rates and inflationary pressures. But in the long run, I recognized that continued population growth, combined with a national housing shortage, would lead to attractive returns for investors. But by the middle of last year, I started becoming much more bullish on the industry. Even though interest rates remain high and inflation has only just come down as of late, we were starting to see a rebound in orders for new properties....

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