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Toll Brothers (TOL) Registers a Bigger Fall Than the Market: Important Facts to Note

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Toll Brothers (TOL - Free Report) closed the most recent trading day at $126.68, moving -2.81% from the previous trading session. The stock's change was less than the S&P 500's daily loss of 0.92%. Elsewhere, the Dow saw a downswing of 1.18%, while the tech-heavy Nasdaq depreciated by 0.84%.

The stock of home builder has fallen by 3.96% in the past month, leading the Construction sector's loss of 4.8% and undershooting the S&P 500's gain of 1.48%.

The investment community will be paying close attention to the earnings performance of Toll Brothers in its upcoming release. The company is slated to reveal its earnings on December 8, 2025. The company's upcoming EPS is projected at $4.91, signifying a 6.05% increase compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $3.32 billion, down 0.28% from the prior-year quarter.

TOL's full-year Zacks Consensus Estimates are calling for earnings of $13.82 per share and revenue of $10.85 billion. These results would represent year-over-year changes of -7.93% and 0%, respectively.

Investors should also note any recent changes to analyst estimates for Toll Brothers. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Right now, Toll Brothers possesses a Zacks Rank of #3 (Hold).

In the context of valuation, Toll Brothers is at present trading with a Forward P/E ratio of 9.28. This denotes a discount relative to the industry average Forward P/E of 11.71.

It is also worth noting that TOL currently has a PEG ratio of 1.52. 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 1.7 based on yesterday's closing prices.

The Building Products - Home Builders industry is part of the Construction sector. At present, this industry carries a Zacks Industry Rank of 213, placing it within the bottom 14% of over 250 industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


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