Stocks

Toll Brothers (TOL) Stock Sinks As Market Gains: What You Should Know

Toll Brothers (TOL) closed at $56.26 in the latest trading session, marking a -1.4% move from the prior day. This move lagged the S&P 500's daily gain of 0.24%.

Prior to today's trading, shares of the home builder had lost 1.16% over the past month. This has lagged the Construction sector's gain of 1.36% and the S&P 500's gain of 4.09% in that time.

Wall Street will be looking for positivity from TOL as it approaches its next earnings report date. In that report, analysts expect TOL to post earnings of $1.52 per share. This would mark year-over-year growth of 68.89%. Our most recent consensus estimate is calling for quarterly revenue of $2.22 billion, up 34.23% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $5.61 per share and revenue of $8.72 billion, which would represent changes of +65% and +23.18%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for TOL. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. TOL is holding a Zacks Rank of #1 (Strong Buy) right now.

Looking at its valuation, TOL is holding a Forward P/E ratio of 10.17. This represents a premium compared to its industry's average Forward P/E of 7.12.

The Building Products - Home Builders industry is part of the Construction sector. This group has a Zacks Industry Rank of 86, putting it in the top 34% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow TOL in the coming trading sessions, be sure to utilize Zacks.com.


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Toll Brothers Inc. (TOL): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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