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Why Toll Brothers (TOL) Dipped More Than Broader Market Today
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The most recent trading session ended with Toll Brothers (TOL - Free Report) standing at $69.43, reflecting a -1.49% shift from the previouse trading day's closing. This move lagged the S&P 500's daily loss of 0.85%. Meanwhile, the Dow experienced a drop of 0.75%, and the technology-dominated Nasdaq saw a decrease of 0.96%.
Coming into today, shares of the home builder had lost 8% in the past month. In that same time, the Construction sector lost 6.14%, while the S&P 500 lost 3.02%.
Market participants will be closely following the financial results of Toll Brothers in its upcoming release. The company is predicted to post an EPS of $3.64, indicating a 22.06% decline compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $2.78 billion, down 25.09% from the year-ago period.
TOL's full-year Zacks Consensus Estimates are calling for earnings of $11.91 per share and revenue of $9.76 billion. These results would represent year-over-year changes of +19.82% and -5.06%, respectively.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Toll Brothers. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Toll Brothers is currently a Zacks Rank #1 (Strong Buy).
Looking at valuation, Toll Brothers is presently trading at a Forward P/E ratio of 5.92. This valuation marks a discount compared to its industry's average Forward P/E of 7.21.
It's also important to note that TOL currently trades at a PEG ratio of 0.6. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Building Products - Home Builders industry had an average PEG ratio of 0.67 as trading concluded yesterday.
The Building Products - Home Builders industry is part of the Construction sector. This industry currently has a Zacks Industry Rank of 78, which puts it in the top 31% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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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Why Toll Brothers (TOL) Dipped More Than Broader Market Today
The most recent trading session ended with Toll Brothers (TOL - Free Report) standing at $69.43, reflecting a -1.49% shift from the previouse trading day's closing. This move lagged the S&P 500's daily loss of 0.85%. Meanwhile, the Dow experienced a drop of 0.75%, and the technology-dominated Nasdaq saw a decrease of 0.96%.
Coming into today, shares of the home builder had lost 8% in the past month. In that same time, the Construction sector lost 6.14%, while the S&P 500 lost 3.02%.
Market participants will be closely following the financial results of Toll Brothers in its upcoming release. The company is predicted to post an EPS of $3.64, indicating a 22.06% decline compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $2.78 billion, down 25.09% from the year-ago period.
TOL's full-year Zacks Consensus Estimates are calling for earnings of $11.91 per share and revenue of $9.76 billion. These results would represent year-over-year changes of +19.82% and -5.06%, respectively.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Toll Brothers. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Toll Brothers is currently a Zacks Rank #1 (Strong Buy).
Looking at valuation, Toll Brothers is presently trading at a Forward P/E ratio of 5.92. This valuation marks a discount compared to its industry's average Forward P/E of 7.21.
It's also important to note that TOL currently trades at a PEG ratio of 0.6. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Building Products - Home Builders industry had an average PEG ratio of 0.67 as trading concluded yesterday.
The Building Products - Home Builders industry is part of the Construction sector. This industry currently has a Zacks Industry Rank of 78, which puts it in the top 31% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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.