Toll Brothers (TOL) Stock Declines While Market Improves: Some Information for Investors
Toll Brothers (TOL) closed at $95.98 in the latest trading session, marking a -1.64% move from the prior day. This move lagged the S&P 500's daily gain of 0.08%. Elsewhere, the Dow saw a downswing of 0.26%, while the tech-heavy Nasdaq appreciated by 0.36%.
Shares of the home builder witnessed a loss of 5.69% over the previous month, trailing the performance of the Construction sector with its loss of 2.24% and the S&P 500's gain of 2.4%.
Analysts and investors alike will be keeping a close eye on the performance of Toll Brothers in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $1.77, reflecting a 4.12% increase from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $1.87 billion, showing a 5.12% escalation compared to the year-ago quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $12.23 per share and a revenue of $9.86 billion, signifying shifts of -1.05% and -1.33%, respectively, from the last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Toll Brothers. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. At present, Toll Brothers boasts a Zacks Rank of #3 (Hold).
In terms of valuation, Toll Brothers is currently trading at a Forward P/E ratio of 7.98. This indicates a discount in contrast to its industry's Forward P/E of 9.55.
One should further note that TOL currently holds a PEG ratio of 0.99. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Building Products - Home Builders was holding an average PEG ratio of 0.78 at yesterday's closing price.
The Building Products - Home Builders industry is part of the Construction sector. This group has a Zacks Industry Rank of 17, putting it in the top 7% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Toll Brothers Inc. (TOL) : Free Stock Analysis Report
