Back to top

Analyst Blog

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at support@zacks.com or call 800-767-3771 ext.  9339.

U.S. homebuilder Toll Brothers, Inc. (TOL - Analyst Report) recently acquired Sienna South in a joint venture with New York City-based GTIS Partners. Sienna South is a 3,700-acre site and constitutes a portion of the Sienna Plantation, one of the most successful master planned communities in Houston. It is the only significant portion of land remaining to be developed within the plantation.

Sienna South can accommodate up to 10,000 single-family homes. However, Toll Brothers plans to develop about 6,500 home lots, which will be sold to local, regional and national homebuilders. The company may use 1,750 of these lots for its homebuilding operations. Sienna South is expected to generate gross home sales of about $2.6 billion when it is fully built. The site development is expected to start in Apr 2014 and the lots are expected to be sold to homebuilders in late 2014. The completed homes are expected to be offered to buyers in 2015.  

Toll Brothers is using its strong liquidity position to secure the most sought-after locations. In Nov 2013, Toll Brothers purchased the homebuilding business of Calif.-based Shapell Industries, Inc. for $1.60 billion; which is expected to largely boost its presence in the upscale Californian housing market.

The housing market in Houston is currently gaining momentum as demand escalates.  With the housing market recovery, a significant gap has been created between demand and supply of homes. Compared to the rising demand for new homes, there is a shortage of adequate supply of homes. Most of the major homebuilding companies like Toll Brothers, KB Home (KBH - Analyst Report), NVR, Inc (NVR - Snapshot Report) and Ryland Group, Inc. (RYL - Snapshot Report) have been investing heavily in building homes.

Toll Brothers carries a Zacks Rank #2 (Buy).
 

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

Learn more

Start for as little as $4.50 per trade.

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
BITAUTO HOLD BITA 33.54 +9.00%
INTERNATIONA ICAGY 33.09 +4.72%
NOAH HOLDING NOAH 13.91 +4.67%
CHINA DISTAN DL 14.79 +4.30%
VALEO SA SPO VLEEY 67.91 +3.95%