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Toll Brothers (TOL) Dips More Than Broader Markets: What You Should Know

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In the latest trading session, Toll Brothers (TOL - Free Report) closed at $53.32, marking a -1.86% move from the previous day. This change lagged the S&P 500's 0.75% loss on the day.

Prior to today's trading, shares of the home builder had lost 4.92% over the past month. This has lagged the Construction sector's loss of 1.03% and the S&P 500's gain of 2.74% in that time.

Wall Street will be looking for positivity from TOL as it approaches its next earnings report date. On that day, TOL is projected to report earnings of $1.52 per share, which would represent year-over-year growth of 68.89%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.22 billion, up 34.68% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $5.74 per share and revenue of $8.66 billion, which would represent changes of +68.82% and +22.29%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for TOL. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. TOL is currently a Zacks Rank #1 (Strong Buy).

Digging into valuation, TOL currently has a Forward P/E ratio of 9.47. This represents a premium compared to its industry's average Forward P/E of 6.72.

The Building Products - Home Builders industry is part of the Construction sector. This industry currently has a Zacks Industry Rank of 98, which puts it in the top 39% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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