DFH - These 2 Little-Known Stocks Could Be Long-Term Home Runs for Patient Investors
2024-03-07 08:07:00 ET
The stock market is near its highest level ever, but that doesn't mean there aren't attractive long-term investment opportunities. Here are two stocks in particular that could be excellent bargains right now and have lots of potential to produce market-beating returns for years to come.
At the beginning of 2023, Dream Finders Homes (NYSE: DFH) expected that it would close on 6,000 homes for the year, which would be a year-over-year decline in a weak real estate market. But the company (and most experts) didn't realize how excellent conditions would be for homebuilders. With existing home inventories at near-record lows and high mortgage rates, homebuilders have some big competitive advantages – such as the ability to create more inventory and the ability to offer financing incentives.
The guidance was later raised to 6,500 home closings, then to 6,750 as we headed into the fourth quarter. Well, in Dream Finders' latest earnings report, we learned that the company closed on 7,314 homes in 2023 -- far beyond its own expectations.
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These 2 Little-Known Stocks Could Be Long-Term Home Runs for Patient Investors