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Why Toll Brothers (TOL) Outpaced the Stock Market Today
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The most recent trading session ended with Toll Brothers (TOL - Free Report) standing at $75.40, reflecting a +1.7% shift from the previouse trading day's closing. This move outpaced the S&P 500's daily gain of 0.43%. On the other hand, the Dow registered a gain of 0.19%, and the technology-centric Nasdaq increased by 0.71%.
The home builder's stock has dropped by 7.3% in the past month, falling short of the Construction sector's loss of 4.21% and the S&P 500's loss of 2.1%.
The investment community will be paying close attention to the earnings performance of Toll Brothers in its upcoming release. On that day, Toll Brothers is projected to report earnings of $3.64 per share, which would represent a year-over-year decline of 22.06%. Simultaneously, our latest consensus estimate expects the revenue to be $2.78 billion, showing a 25.09% drop compared to the year-ago quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $11.91 per share and a revenue of $9.76 billion, indicating changes of +19.82% and -5.06%, respectively, from the former year.
Investors should also take note of any recent adjustments to analyst estimates for Toll Brothers. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 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. Over the past month, there's been a 0.01% rise in the Zacks Consensus EPS estimate. Toll Brothers currently has a Zacks Rank of #1 (Strong Buy).
From a valuation perspective, Toll Brothers is currently exchanging hands at a Forward P/E ratio of 6.23. This indicates a discount in contrast to its industry's Forward P/E of 7.15.
One should further note that TOL currently holds a PEG ratio of 0.63. 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 industry currently had an average PEG ratio of 0.68 as of yesterday's close.
The Building Products - Home Builders industry is part of the Construction sector. At present, this industry carries a Zacks Industry Rank of 35, placing it within the top 14% of over 250 industries.
The Zacks Industry Rank is ordered 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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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Why Toll Brothers (TOL) Outpaced the Stock Market Today
The most recent trading session ended with Toll Brothers (TOL - Free Report) standing at $75.40, reflecting a +1.7% shift from the previouse trading day's closing. This move outpaced the S&P 500's daily gain of 0.43%. On the other hand, the Dow registered a gain of 0.19%, and the technology-centric Nasdaq increased by 0.71%.
The home builder's stock has dropped by 7.3% in the past month, falling short of the Construction sector's loss of 4.21% and the S&P 500's loss of 2.1%.
The investment community will be paying close attention to the earnings performance of Toll Brothers in its upcoming release. On that day, Toll Brothers is projected to report earnings of $3.64 per share, which would represent a year-over-year decline of 22.06%. Simultaneously, our latest consensus estimate expects the revenue to be $2.78 billion, showing a 25.09% drop compared to the year-ago quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $11.91 per share and a revenue of $9.76 billion, indicating changes of +19.82% and -5.06%, respectively, from the former year.
Investors should also take note of any recent adjustments to analyst estimates for Toll Brothers. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 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. Over the past month, there's been a 0.01% rise in the Zacks Consensus EPS estimate. Toll Brothers currently has a Zacks Rank of #1 (Strong Buy).
From a valuation perspective, Toll Brothers is currently exchanging hands at a Forward P/E ratio of 6.23. This indicates a discount in contrast to its industry's Forward P/E of 7.15.
One should further note that TOL currently holds a PEG ratio of 0.63. 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 industry currently had an average PEG ratio of 0.68 as of yesterday's close.
The Building Products - Home Builders industry is part of the Construction sector. At present, this industry carries a Zacks Industry Rank of 35, placing it within the top 14% of over 250 industries.
The Zacks Industry Rank is ordered 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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.