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Toll Brothers (TOL) Declines More Than Market: Some Information for Investors

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Toll Brothers (TOL - Free Report) closed at $137.21 in the latest trading session, marking a -3.1% move from the prior day. The stock's performance was behind the S&P 500's daily loss of 0.38%. Meanwhile, the Dow lost 0.63%, and the Nasdaq, a tech-heavy index, lost 0.13%.

The home builder's stock has climbed by 1.75% in the past month, falling short of the Construction sector's gain of 13.94% and the S&P 500's gain of 11.41%.

Market participants will be closely following the financial results of Toll Brothers in its upcoming release. The company plans to announce its earnings on May 19, 2026. It is anticipated that the company will report an EPS of $2.57, marking a 26.57% fall compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $2.41 billion, indicating a 12.05% decline compared to the corresponding quarter of the prior 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.

Investors should also note any recent changes to analyst estimates for Toll Brothers. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.29% lower. Toll Brothers is holding a Zacks Rank of #3 (Hold) right now.

Valuation is also important, so investors should note that Toll Brothers has a Forward P/E ratio of 11.18 right now. This expresses a discount compared to the average Forward P/E of 14.12 of its industry.

It is also worth noting that TOL currently has a PEG ratio of 1.11. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Building Products - Home Builders industry currently had an average PEG ratio of 1.52 as of yesterday's close.

The Building Products - Home Builders industry is part of the Construction sector. This industry, currently bearing a Zacks Industry Rank of 227, finds itself in the bottom 7% echelons of all 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.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.

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