Toll Brothers (TOL) Ascends But Remains Behind Market: Some Facts to Note
Toll Brothers (TOL) ended the recent trading session at $99.31, demonstrating a +0.42% swing from the preceding day's closing price. The stock fell short of the S&P 500, which registered a gain of 0.88% for the day. Elsewhere, the Dow gained 0.54%, while the tech-heavy Nasdaq added 1.35%.
Prior to today's trading, shares of the home builder had lost 3.16% over the past month. This has lagged the Construction sector's loss of 2.01% and the S&P 500's gain of 0.64% in that time.
The investment community will be closely monitoring the performance of Toll Brothers in its forthcoming earnings report. The company is predicted to post an EPS of $1.77, indicating a 4.12% growth compared to the equivalent quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $1.87 billion, indicating a 5.12% upward movement from the same quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $12.23 per share and revenue of $9.86 billion. These totals would mark changes of -1.05% and -1.33%, respectively, from last year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Toll Brothers. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.23% higher. Toll Brothers currently has a Zacks Rank of #3 (Hold).
With respect to valuation, Toll Brothers is currently being traded at a Forward P/E ratio of 8.08. This expresses a discount compared to the average Forward P/E of 9.49 of its industry.
Meanwhile, TOL's PEG ratio is currently 1.01. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Building Products - Home Builders industry currently had an average PEG ratio of 0.81 as of yesterday's close.
The Building Products - Home Builders industry is part of the Construction sector. This group has a Zacks Industry Rank of 13, putting it in the top 6% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Toll Brothers Inc. (TOL) : Free Stock Analysis Report
