Back to top

Image: Bigstock

Toll Brothers (TOL) Stock Moves -2.99%: What You Should Know

Read MoreHide Full Article

Toll Brothers (TOL - Free Report) ended the recent trading session at $134.60, demonstrating a -2.99% change from the preceding day's closing price. Meanwhile, the Dow lost 0.16%, and the Nasdaq, a tech-heavy index, added 0.55%.

Prior to today's trading, shares of the home builder had gained 0.44% lagged the Construction sector's gain of 0.86% and the S&P 500's gain of 3.83%.

The investment community will be closely monitoring the performance of Toll Brothers in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $4.91, reflecting a 6.05% increase from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $3.32 billion, down 0.28% from the year-ago period.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $13.82 per share and a revenue of $10.85 billion, signifying shifts of -7.93% and +0.06%, respectively, from the last year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Toll Brothers. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Right now, Toll Brothers possesses a Zacks Rank of #4 (Sell).

In the context of valuation, Toll Brothers is at present trading with a Forward P/E ratio of 10.04. This represents a discount compared to its industry average Forward P/E of 11.91.

Investors should also note that TOL has a PEG ratio of 1.65 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. As of the close of trade yesterday, the Building Products - Home Builders industry held an average PEG ratio of 3.2.

The Building Products - Home Builders industry is part of the Construction sector. This group has a Zacks Industry Rank of 198, putting it in the bottom 20% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Toll Brothers Inc. (TOL) - free report >>

Published in