We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Toll Brothers (TOL) Outperforms Broader Market: What You Need to Know
Read MoreHide Full Article
In the latest close session, Toll Brothers (TOL - Free Report) was up +2.63% at $154.98. The stock outperformed the S&P 500, which registered a daily gain of 0.21%. Elsewhere, the Dow gained 1.03%, while the tech-heavy Nasdaq lost 0.22%.
Shares of the home builder witnessed a loss of 8.41% over the previous month, trailing the performance of the Construction sector with its loss of 6.68%, and the S&P 500's gain of 1.7%.
The investment community will be paying close attention to the earnings performance of Toll Brothers in its upcoming release. In that report, analysts expect Toll Brothers to post earnings of $2.9 per share. This would mark a year-over-year decline of 22.25%. Meanwhile, our latest consensus estimate is calling for revenue of $2.6 billion, down 11.81% from the prior-year quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $12.69 per share and a revenue of $10.7 billion, representing changes of -5.93% and -2.44%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Toll Brothers. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Toll Brothers currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Toll Brothers is presently being traded at a Forward P/E ratio of 11.9. Its industry sports an average Forward P/E of 14.5, so one might conclude that Toll Brothers is trading at a discount comparatively.
One should further note that TOL currently holds a PEG ratio of 1.25. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Building Products - Home Builders was holding an average PEG ratio of 2.85 at yesterday's closing price.
The Building Products - Home Builders industry is part of the Construction sector. With its current Zacks Industry Rank of 154, this industry ranks in the bottom 38% of all industries, numbering over 250.
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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
View the Zacks #1 Rank List
Image: Bigstock
Toll Brothers (TOL) Outperforms Broader Market: What You Need to Know
In the latest close session, Toll Brothers (TOL - Free Report) was up +2.63% at $154.98. The stock outperformed the S&P 500, which registered a daily gain of 0.21%. Elsewhere, the Dow gained 1.03%, while the tech-heavy Nasdaq lost 0.22%.
Shares of the home builder witnessed a loss of 8.41% over the previous month, trailing the performance of the Construction sector with its loss of 6.68%, and the S&P 500's gain of 1.7%.
The investment community will be paying close attention to the earnings performance of Toll Brothers in its upcoming release. In that report, analysts expect Toll Brothers to post earnings of $2.9 per share. This would mark a year-over-year decline of 22.25%. Meanwhile, our latest consensus estimate is calling for revenue of $2.6 billion, down 11.81% from the prior-year quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $12.69 per share and a revenue of $10.7 billion, representing changes of -5.93% and -2.44%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Toll Brothers. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Toll Brothers currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Toll Brothers is presently being traded at a Forward P/E ratio of 11.9. Its industry sports an average Forward P/E of 14.5, so one might conclude that Toll Brothers is trading at a discount comparatively.
One should further note that TOL currently holds a PEG ratio of 1.25. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Building Products - Home Builders was holding an average PEG ratio of 2.85 at yesterday's closing price.
The Building Products - Home Builders industry is part of the Construction sector. With its current Zacks Industry Rank of 154, this industry ranks in the bottom 38% of all industries, numbering over 250.
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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.