Toll Brothers (TOL) Suffers a Larger Drop Than the General Market: Key Insights
Toll Brothers (TOL) ended the recent trading session at $99.02, demonstrating a -1.15% swing from the preceding day's closing price. This move lagged the S&P 500's daily loss of 0.32%. Meanwhile, the Dow lost 0.71%, and the Nasdaq, a tech-heavy index, lost 0.2%.
Shares of the home builder have appreciated by 0.38% over the course of the past month, underperforming the Construction sector's gain of 2.55% and the S&P 500's gain of 4.59%.
Market participants will be closely following the financial results of Toll Brothers in its upcoming release. 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. 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.
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.
Any recent changes to analyst estimates for Toll Brothers should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. At present, Toll Brothers boasts a Zacks Rank of #3 (Hold).
Looking at valuation, Toll Brothers is presently trading at a Forward P/E ratio of 8.19. Its industry sports an average Forward P/E of 9.64, so one might conclude that Toll Brothers is trading at a discount comparatively.
It is also worth noting that TOL currently has a PEG ratio of 1.02. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Building Products - Home Builders industry held an average PEG ratio of 0.83.
The Building Products - Home Builders industry is part of the Construction sector. Currently, this industry holds a Zacks Industry Rank of 37, positioning it in the top 15% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Toll Brothers Inc. (TOL) : Free Stock Analysis Report
