Is Toll Brothers (TOL) Stock Outpacing Its Construction Peers This Year?

TOL

Investors interested in Construction stocks should always be looking to find the best-performing companies in the group. Toll Brothers (TOL - Free Report) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? One simple way to answer this question is to take a look at the year-to-date performance of TOL and the rest of the Construction group's stocks.

Toll Brothers is one of 103 companies in the Construction group. The Construction group currently sits at #10 within the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.

The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. TOL is currently sporting a Zacks Rank of #2 (Buy).

Over the past three months, the Zacks Consensus Estimate for TOL's full-year earnings has moved 8.29% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

Our latest available data shows that TOL has returned about 37.61% since the start of the calendar year. Meanwhile, the Construction sector has returned an average of 16.95% on a year-to-date basis. As we can see, Toll Brothers is performing better than its sector in the calendar year.

Looking more specifically, TOL belongs to the Building Products - Home Builders industry, which includes 19 individual stocks and currently sits at #156 in the Zacks Industry Rank. Stocks in this group have gained about 15.98% so far this year, so TOL is performing better this group in terms of year-to-date returns.

Investors in the Construction sector will want to keep a close eye on TOL as it attempts to continue its solid performance.

Infrastructure Stock Boom to Sweep America

A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.

The only question is “Will you get into the right stocks early when their growth potential is greatest?”

Zacks has released a Special Report to help you do just that, and today it’s free. Discover 5 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.

Download FREE: How To Profit From Trillions On Spending For Infrastructure >>