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

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Toll Brothers (TOL - Free Report) closed the most recent trading day at $142.14, moving +1.84% from the previous trading session. This move outpaced the S&P 500's daily gain of 1.02%. Elsewhere, the Dow saw an upswing of 1.62%, while the tech-heavy Nasdaq appreciated by 0.89%.

Heading into today, shares of the home builder had gained 1.99% over the past month, lagging the Construction sector's gain of 10.28% and the S&P 500's gain of 12.23%.

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 May 19, 2026. The company is expected to report EPS of $2.57, down 26.57% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $2.41 billion, reflecting a 12.05% fall from the equivalent quarter last year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $12.67 per share and a revenue of $10.64 billion, signifying shifts of -6.08% and -2.97%, respectively, from the last 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. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.29% lower. Toll Brothers currently has a Zacks Rank of #3 (Hold).

In the context of valuation, Toll Brothers is at present trading with a Forward P/E ratio of 11.02. This signifies a discount in comparison to the average Forward P/E of 14.42 for its industry.

We can additionally observe that TOL currently boasts a PEG ratio of 1.09. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. By the end of yesterday's trading, the Building Products - Home Builders industry had an average PEG ratio of 2.04.

The Building Products - Home Builders industry is part of the Construction sector. This industry, currently bearing a Zacks Industry Rank of 216, finds itself in the bottom 12% echelons of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

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

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