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

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Toll Brothers (TOL - Free Report) closed at $59.59 in the latest trading session, marking a +0.54% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.18%.

Coming into today, shares of the home builder had gained 1.77% in the past month. In that same time, the Construction sector gained 1.74%, while the S&P 500 gained 2.44%.

Investors will be hoping for strength from TOL as it approaches its next earnings release. 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, our latest consensus estimate is calling for revenue of $2.22 billion, up 34.23% from the prior-year quarter.

TOL's full-year Zacks Consensus Estimates are calling for earnings of $5.61 per share and revenue of $8.72 billion. These results would represent year-over-year changes of +65% and +23.18%, respectively.

Investors should also note any recent changes to analyst estimates for TOL. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. TOL is currently a Zacks Rank #2 (Buy).

Valuation is also important, so investors should note that TOL has a Forward P/E ratio of 10.56 right now. This represents a premium compared to its industry's average Forward P/E of 7.36.

The Building Products - Home Builders industry is part of the Construction sector. This group has a Zacks Industry Rank of 49, putting it in the top 20% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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