We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Toll Brothers (TOL) Gains As Market Dips: What You Should Know
Read MoreHide Full Article
Toll Brothers (TOL - Free Report) closed the most recent trading day at $55.24, moving +1.3% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.37%.
Prior to today's trading, shares of the home builder had lost 16.8% over the past month. This has lagged the Construction sector's loss of 13.47% and the S&P 500's loss of 6.01% in that time.
Wall Street will be looking for positivity from Toll Brothers as it approaches its next earnings report date. This is expected to be February 22, 2022. In that report, analysts expect Toll Brothers to post earnings of $1.12 per share. This would mark year-over-year growth of 47.37%. Meanwhile, our latest consensus estimate is calling for revenue of $1.77 billion, up 13.24% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $9.94 per share and revenue of $10.35 billion. These totals would mark changes of +49.92% and +17.73%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Toll Brothers. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 has moved 2.43% higher. Toll Brothers currently has a Zacks Rank of #1 (Strong Buy).
Valuation is also important, so investors should note that Toll Brothers has a Forward P/E ratio of 5.49 right now. This represents a premium compared to its industry's average Forward P/E of 4.53.
We can also see that TOL currently has a PEG ratio of 0.21. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Building Products - Home Builders stocks are, on average, holding a PEG ratio of 0.52 based on yesterday's closing prices.
The Building Products - Home Builders industry is part of the Construction sector. This group has a Zacks Industry Rank of 24, putting it in the top 10% 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.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Toll Brothers (TOL) Gains As Market Dips: What You Should Know
Toll Brothers (TOL - Free Report) closed the most recent trading day at $55.24, moving +1.3% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.37%.
Prior to today's trading, shares of the home builder had lost 16.8% over the past month. This has lagged the Construction sector's loss of 13.47% and the S&P 500's loss of 6.01% in that time.
Wall Street will be looking for positivity from Toll Brothers as it approaches its next earnings report date. This is expected to be February 22, 2022. In that report, analysts expect Toll Brothers to post earnings of $1.12 per share. This would mark year-over-year growth of 47.37%. Meanwhile, our latest consensus estimate is calling for revenue of $1.77 billion, up 13.24% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $9.94 per share and revenue of $10.35 billion. These totals would mark changes of +49.92% and +17.73%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Toll Brothers. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 has moved 2.43% higher. Toll Brothers currently has a Zacks Rank of #1 (Strong Buy).
Valuation is also important, so investors should note that Toll Brothers has a Forward P/E ratio of 5.49 right now. This represents a premium compared to its industry's average Forward P/E of 4.53.
We can also see that TOL currently has a PEG ratio of 0.21. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Building Products - Home Builders stocks are, on average, holding a PEG ratio of 0.52 based on yesterday's closing prices.
The Building Products - Home Builders industry is part of the Construction sector. This group has a Zacks Industry Rank of 24, putting it in the top 10% 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.