Toll Brothers (TOL) Laps the Stock Market: Here's Why
Toll Brothers (TOL) closed the latest trading day at $104.18, indicating a +1.45% change from the previous session's end. The stock exceeded the S&P 500, which registered a gain of 0.58% for the day. At the same time, the Dow added 0.91%, and the tech-heavy Nasdaq gained 0.3%.
Coming into today, shares of the home builder had gained 3.84% in the past month. In that same time, the Construction sector gained 4.75%, while the S&P 500 gained 4.61%.
Market participants will be closely following the financial results of Toll Brothers in its upcoming release. The company plans to announce its earnings on February 20, 2024. It is anticipated that the company will report an EPS of $1.77, marking a 4.12% rise compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $1.87 billion, up 5.12% from the prior-year quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $12.23 per share and a revenue of $9.86 billion, indicating changes of -1.05% and -1.33%, respectively, from the former year.
Investors should also note any recent changes to analyst estimates for Toll Brothers. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Toll Brothers presently features a Zacks Rank of #2 (Buy).
Looking at valuation, Toll Brothers is presently trading at a Forward P/E ratio of 8.4. This denotes a discount relative to the industry's average Forward P/E of 8.86.
We can additionally observe that TOL currently boasts a PEG ratio of 1.05. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Building Products - Home Builders stocks are, on average, holding a PEG ratio of 0.82 based on yesterday's closing prices.
The Building Products - Home Builders industry is part of the Construction sector. This industry currently has a Zacks Industry Rank of 33, which puts it in the top 14% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Toll Brothers Inc. (TOL) : Free Stock Analysis Report
