We recently published a list of Jim Cramer Latest Portfolio: 10 Stocks to Buy and Sell. Since Dream Finders Homes Inc (NYSE:DFH) ranks 10th on the list, it deserves a deeper look.
Jim Cramer in his latest program talked about how the China factor is affecting US stocks. He said that companies that have exposure to China are getting hammered and he does not see that changing “anytime soon.”
Cramer said that currently there are many “pernicious forces working against the bulls.” The CNBC host said many growth stocks are declining right when interest rates are around the corner. He said that companies that don’t benefit from rate cuts are going down. Cramer also mentioned weak earnings reports which show companies having challenged client bases. Cramer mentioned a consumer products company that was recently hammered because of weakness in China.
Cramer thinks the problem in China is twofold: there’s a government that does not like America or American businesses while the population is “cash-strapped” even if they “like our country.”
Cramer said “China is so darn complicated.” He said at one point the Chinese government was “so business friendly” that Western companies thought it’s “insane” not to go there. But since the Trump administration, the country has been engaged in trade wars with the US.
Cramer said the Chinese government “took advantage of us on trade.”
For this article we watched several latest programs of Jim Cramer and picked 10 important stocks he’s talking about. With each stock we have mentioned its hedge fund sentiment. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
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Dream Finders Homes Inc (NYSE:DFH)
Number of Hedge Fund Investors: 14
Jim Cramer was recently asked about Dream Finders Homes. He said that he “likes the business very much” and people don’t know much about the company.
Homebuilding company Dream Finders Homes Inc (NYSE:DFH) is poised to benefit from the expected rise in home construction activity in the US amid a severe shortage of homes. According to a report from Zillow, the US is short on over 4.5 million homes. While the industry has seen headwinds amid rising rates, in the long term, secular growth catalysts are intact. Dream Finders Homes Inc (NYSE:DFH) net income surged from $121.6 million to $295.9 million over the past three years.
Operating cash flow increased nearly sixfold from $65 million to $374.2 million, while adjusted operating cash flow more than doubled from $160 million to $350.5 million. EBITDA also expanded from $200.2 million to $535.6 million. The cancellation rate of house orders is also inching lower. The cancellation rate, which had surged from 12.2% in 2021 to 21.5% in 2022, fell to 18.3% in 2023.
This year Dream Finders Homes Inc (NYSE:DFH) expects to close 8,250 properties, a 12.8% increase from 2023. This growth would be driven by net new orders and the acquisition of Crescent Homes which the company bought for $185 million.
Overall, Dream Finders Homes Inc (NYSE:DFH) ranks 10th on Insider Monkey’s list titled Jim Cramer Latest Portfolio: 10 Stocks to Buy and Sell. While we acknowledge the potential of Dream Finders Homes Inc (NYSE:DFH) our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than DFH but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.