On Mar 4, 2014, shares of
Toll Brothers Inc.
) reached a 52-week high of $39.95, eventually closing at $39.51.
The closing price represented a year-to-date return of around
LENNAR CORP -A (LEN): Free Stock Analysis
TAYLOR MORRISON (TMHC): Free Stock Analysis
TOLL BROTHERS (TOL): Free Stock Analysis
WILLIAM LYON HM (WLH): Get Free Report
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Share Price Drivers
Share price of Toll Brothers has been gaining momentum since the
release of its first quarter results on Feb 25. The share price
was also driven by the release of housing data.
This Zacks Rank #3 (Hold) company has delivered strong results
despite weakness in order growth for the past three quarters.
Toll Brothers reported adjusted earnings of 25 cents per share in
the first quarter of fiscal 2014, surpassing the Zacks Consensus
Estimate of 18 cents by 39%. Adjusted earnings increased
significantly from 3 cents in the prior-year quarter on the back
of top-line growth.
The company reported revenues of $643.7 million in the first
quarter of fiscal 2014, up 52.0% year over year, driven by
Recent data from the U.S. Department of Housing and Urban
Development and the U.S. Census Bureau showed that sales of newly
built, single-family homes rose 9.6% in Jan 2014, which is the
strongest since July 2008. Sales growth was driven by the release
of pent up demand for new homes. By region, sales increased
10.4%, 11.0% and 73.7% in the South, the West and the Northeast,
respectively. Toll Brothers draws a significant amount of revenue
from these regions. During first quarter 2014, the company
reported 23.4% of homebuilding revenues from South, 29% from West
and 20% from North.
Other Stocks to Consider
Investors interested in the homebuilding sector can also consider
William Lyon Homes
Taylor Morrison Home Corporation
). While William Lyon and Taylor Morrison sport a Zacks Rank #1
(Strong Buy), Lennar carries a Zacks Rank #2 (Buy).