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Toll Brothers (TOL) Gains As Market Dips: What You Should Know
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Toll Brothers (TOL - Free Report) closed the most recent trading day at $164.05, moving +1.22% from the previous trading session. The stock's performance was ahead of the S&P 500's daily loss of 0.05%. At the same time, the Dow lost 0.09%, and the tech-heavy Nasdaq lost 0.24%.
Heading into today, shares of the home builder had gained 17.33% over the past month, outpacing the Construction sector's gain of 10.65% and the S&P 500's loss of 1.42%.
The upcoming earnings release of Toll Brothers will be of great interest to investors. The company is expected to report EPS of $2.9, down 22.25% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $2.6 billion, reflecting a 11.81% fall from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $12.69 per share and revenue of $10.7 billion, which would represent changes of -5.93% and -2.44%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Toll Brothers. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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 0.04% lower. Toll Brothers presently features a Zacks Rank of #3 (Hold).
From a valuation perspective, Toll Brothers is currently exchanging hands at a Forward P/E ratio of 12.77. This indicates a discount in contrast to its industry's Forward P/E of 16.76.
Also, we should mention that TOL has a PEG ratio of 1.34. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Building Products - Home Builders industry had an average PEG ratio of 2.72 as trading concluded yesterday.
The Building Products - Home Builders industry is part of the Construction sector. This group has a Zacks Industry Rank of 231, putting it in the bottom 6% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
View the Zacks #1 Rank List
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Toll Brothers (TOL) Gains As Market Dips: What You Should Know
Toll Brothers (TOL - Free Report) closed the most recent trading day at $164.05, moving +1.22% from the previous trading session. The stock's performance was ahead of the S&P 500's daily loss of 0.05%. At the same time, the Dow lost 0.09%, and the tech-heavy Nasdaq lost 0.24%.
Heading into today, shares of the home builder had gained 17.33% over the past month, outpacing the Construction sector's gain of 10.65% and the S&P 500's loss of 1.42%.
The upcoming earnings release of Toll Brothers will be of great interest to investors. The company is expected to report EPS of $2.9, down 22.25% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $2.6 billion, reflecting a 11.81% fall from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $12.69 per share and revenue of $10.7 billion, which would represent changes of -5.93% and -2.44%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Toll Brothers. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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 0.04% lower. Toll Brothers presently features a Zacks Rank of #3 (Hold).
From a valuation perspective, Toll Brothers is currently exchanging hands at a Forward P/E ratio of 12.77. This indicates a discount in contrast to its industry's Forward P/E of 16.76.
Also, we should mention that TOL has a PEG ratio of 1.34. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Building Products - Home Builders industry had an average PEG ratio of 2.72 as trading concluded yesterday.
The Building Products - Home Builders industry is part of the Construction sector. This group has a Zacks Industry Rank of 231, putting it in the bottom 6% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.