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Toro Company (The) (TTC) Soars to 52-Week High, Time to Cash Out?

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Have you been paying attention to shares of Toro (TTC - Free Report) ? Shares have been on the move with the stock up 13.3% over the past month. The stock hit a new 52-week high of $101.79 in the previous session. Toro has gained 29.3% since the start of the year compared to the -3.1% move for the Zacks Consumer Discretionary sector and the 17.2% return for the Zacks Tools - Handheld industry.

What's Driving the Outperformance?

The stock has a great record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on December 17, 2025, Toro reported EPS of $0.91 versus consensus estimate of $0.86.

For the current fiscal year, Toro is expected to post earnings of $4.59 per share on $4.65 in revenues. This represents a 9.29% change in EPS on a 3.14% change in revenues. For the next fiscal year, the company is expected to earn $4.91 per share on $4.84 in revenues. This represents a year-over-year change of 7.15% and 4.07%, respectively.

Valuation Metrics

While Toro has moved to its 52-week high over the past few weeks, investors need to be asking, what is next for the company? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.

On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). The individual style scores for Value, Growth, Momentum and the combined VGM Score run from A through F. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.

Toro has a Value Score of C. The stock's Growth and Momentum Scores are A and F, respectively, giving the company a VGM Score of B.

In terms of its value breakdown, the stock currently trades at 22.2X current fiscal year EPS estimates, which is a premium to the peer industry average of 20.8X. On a trailing cash flow basis, the stock currently trades at 17.7X versus its peer group's average of 16.1X. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.

Zacks Rank

We also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, Toro currently has a Zacks Rank of #2 (Buy) thanks to favorable earnings estimate revisions from covering analysts.

Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Toro fits the bill. Thus, it seems as though Toro shares could still be poised for more gains ahead.

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