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Toll Brothers (TOL) Stock Sinks As Market Gains: What You Should Know
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Toll Brothers (TOL - Free Report) closed the most recent trading day at $81.98, moving -0.22% from the previous trading session. This change lagged the S&P 500's 0.85% gain on the day. At the same time, the Dow added 0.14%, and the tech-heavy Nasdaq gained 5.61%.
Heading into today, shares of the home builder had gained 12.09% over the past month, outpacing the Construction sector's gain of 8.46% and the S&P 500's gain of 3.18% in that time.
Wall Street will be looking for positivity from Toll Brothers as it approaches its next earnings report date. On that day, Toll Brothers is projected to report earnings of $2.86 per share, which would represent year-over-year growth of 21.7%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.47 billion, down 1% from the year-ago period.
TOL's full-year Zacks Consensus Estimates are calling for earnings of $10.61 per share and revenue of $9.33 billion. These results would represent year-over-year changes of +6.74% and -9.24%, respectively.
Investors should also note any recent changes to analyst estimates for Toll Brothers. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Within the past 30 days, our consensus EPS projection has moved 2.35% higher. Toll Brothers is currently sporting 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 7.75 right now. Its industry sports an average Forward P/E of 10.14, so we one might conclude that Toll Brothers is trading at a discount comparatively.
It is also worth noting that TOL currently has a PEG ratio of 0.7. 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. The Building Products - Home Builders was holding an average PEG ratio of 0.82 at yesterday's closing price.
The Building Products - Home Builders industry is part of the Construction sector. This industry currently has a Zacks Industry Rank of 12, which puts it in the top 5% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Toll Brothers (TOL) Stock Sinks As Market Gains: What You Should Know
Toll Brothers (TOL - Free Report) closed the most recent trading day at $81.98, moving -0.22% from the previous trading session. This change lagged the S&P 500's 0.85% gain on the day. At the same time, the Dow added 0.14%, and the tech-heavy Nasdaq gained 5.61%.
Heading into today, shares of the home builder had gained 12.09% over the past month, outpacing the Construction sector's gain of 8.46% and the S&P 500's gain of 3.18% in that time.
Wall Street will be looking for positivity from Toll Brothers as it approaches its next earnings report date. On that day, Toll Brothers is projected to report earnings of $2.86 per share, which would represent year-over-year growth of 21.7%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.47 billion, down 1% from the year-ago period.
TOL's full-year Zacks Consensus Estimates are calling for earnings of $10.61 per share and revenue of $9.33 billion. These results would represent year-over-year changes of +6.74% and -9.24%, respectively.
Investors should also note any recent changes to analyst estimates for Toll Brothers. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Within the past 30 days, our consensus EPS projection has moved 2.35% higher. Toll Brothers is currently sporting 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 7.75 right now. Its industry sports an average Forward P/E of 10.14, so we one might conclude that Toll Brothers is trading at a discount comparatively.
It is also worth noting that TOL currently has a PEG ratio of 0.7. 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. The Building Products - Home Builders was holding an average PEG ratio of 0.82 at yesterday's closing price.
The Building Products - Home Builders industry is part of the Construction sector. This industry currently has a Zacks Industry Rank of 12, which puts it in the top 5% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.