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Toll Brothers (TOL) Rises As Market Takes a Dip: Key Facts

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Toll Brothers (TOL - Free Report) closed at $150.53 in the latest trading session, marking a +2.78% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.51%. Elsewhere, the Dow gained 0.53%, while the tech-heavy Nasdaq lost 1.51%.

Shares of the home builder have appreciated by 7.62% over the course of the past month, outperforming the Construction sector's gain of 7.04%, and the S&P 500's gain of 0.93%.

Investors will be eagerly watching for the performance of Toll Brothers in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on February 17, 2026. The company's earnings per share (EPS) are projected to be $2.05, reflecting a 17.14% increase from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $1.84 billion, indicating a 0.87% decline compared to the corresponding quarter of the prior year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $12.69 per share and a revenue of $10.4 billion, indicating changes of -5.93% and -5.14%, respectively, from the former year.

It is also important to note the recent changes to analyst estimates for Toll Brothers. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. The Zacks Consensus EPS estimate has moved 0.63% higher within the past month. Right now, Toll Brothers possesses a Zacks Rank of #5 (Strong Sell).

Digging into valuation, Toll Brothers currently has a Forward P/E ratio of 11.54. This expresses a discount compared to the average Forward P/E of 14.15 of its industry.

Investors should also note that TOL has a PEG ratio of 1.15 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Building Products - Home Builders industry stood at 1.76 at the close of the market yesterday.

The Building Products - Home Builders industry is part of the Construction sector. With its current Zacks Industry Rank of 243, this industry ranks in the bottom 1% of all industries, numbering over 250.

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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