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

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Toll Brothers (TOL - Free Report) closed at $57.56 in the latest trading session, marking a -0.74% move from the prior day. This move lagged the S&P 500's daily loss of 0.09%.

Coming into today, shares of the home builder had gained 3.19% in the past month. In that same time, the Construction sector gained 3.22%, while the S&P 500 gained 2.28%.

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.

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. With this in mind, we can consider positive estimate revisions a sign of optimism about 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. Within the past 30 days, our consensus EPS projection remained stagnant. TOL is currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, TOL is currently trading at a Forward P/E ratio of 10.34. This represents a premium compared to its industry's average Forward P/E of 6.88.

The Building Products - Home Builders industry is part of the Construction sector. This industry currently has a Zacks Industry Rank of 65, which puts it in the top 26% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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