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Toll Brothers (TOL) Exceeds Market Returns: Some Facts to Consider

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In the latest close session, Toll Brothers (TOL - Free Report) was up +1.56% at $140.51. The stock's performance was ahead of the S&P 500's daily gain of 0.69%. Elsewhere, the Dow gained 0.67%, while the tech-heavy Nasdaq added 0.82%.

Heading into today, shares of the home builder had lost 0.29% over the past month, outpacing the Construction sector's loss of 3.09% and the S&P 500's loss of 0.31%.

The upcoming earnings release of Toll Brothers will be of great interest to investors. The company's earnings report is expected on December 8, 2025. It is anticipated that the company will report an EPS of $4.91, marking a 6.05% rise compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $3.32 billion, down 0.26% from the prior-year quarter.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $13.82 per share and a revenue of $10.87 billion, signifying shifts of -7.93% and 0%, respectively, from the last year.

It is also important to note the recent changes to analyst estimates for Toll Brothers. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Right now, Toll Brothers possesses a Zacks Rank of #3 (Hold).

From a valuation perspective, Toll Brothers is currently exchanging hands at a Forward P/E ratio of 9.85. This valuation marks a discount compared to its industry average Forward P/E of 12.26.

We can additionally observe that TOL currently boasts a PEG ratio of 1.62. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Building Products - Home Builders stocks are, on average, holding a PEG ratio of 1.84 based on yesterday's closing prices.

The Building Products - Home Builders industry is part of the Construction sector. This group has a Zacks Industry Rank of 215, putting it in the bottom 13% 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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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