Smith Douglas Homes Corp. (SDHC): A Bear Case Theory

We came across a bearish thesis on Smith Douglas Homes Corp. on Darius Dark Investing’s Substack. In this article, we will summarize the bulls’ thesis on SDHC. Smith Douglas Homes Corp.'s share was trading at $20.57 as of July 28^th. SDHC’s trailing and forward P/E were 11.56 and 15.95, respectively according to Yahoo Finance.

[caption id="attachment_1209361" align="aligncenter" width="768"] Aerial view of a newly-constructed residential home in a suburban neighborhood.[/caption]

Smith Douglas Homes Corp. (NYSE: SDHC), which went public in January 2024, positioned itself as a...