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Toll Brothers (TOL) Sees a More Significant Dip Than Broader Market: Some Facts to Know

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Toll Brothers (TOL - Free Report) closed the most recent trading day at $150.00, moving -3.28% from the previous trading session. The stock trailed the S&P 500, which registered a daily loss of 0.06%. Elsewhere, the Dow saw a downswing of 0.11%, while the tech-heavy Nasdaq depreciated by 0.32%.

Shares of the home builder have appreciated by 3.75% over the course of the past month, outperforming the Construction sector's loss of 0%, and the S&P 500's gain of 3.42%.

Analysts and investors alike will be keeping a close eye on the performance of Toll Brothers in its upcoming earnings disclosure. The company's earnings report is set to go public on August 18, 2026. The company is forecasted to report an EPS of $2.9, showcasing a 22.25% downward movement from the corresponding quarter of the prior year. Meanwhile, our latest consensus estimate is calling for revenue of $2.6 billion, down 11.81% from the prior-year quarter.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $12.69 per share and revenue of $10.7 billion, indicating changes of -5.93% and -2.44%, respectively, compared to the previous year.

Investors should also take note of any recent adjustments 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 suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Toll Brothers is holding a Zacks Rank of #3 (Hold) right now.

With respect to valuation, Toll Brothers is currently being traded at a Forward P/E ratio of 12.22. This denotes a discount relative to the industry average Forward P/E of 14.93.

We can also see that TOL currently has a PEG ratio of 1.28. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As the market closed yesterday, the Building Products - Home Builders industry was having an average PEG ratio of 2.96.

The Building Products - Home Builders industry is part of the Construction sector. Currently, this industry holds a Zacks Industry Rank of 190, positioning it in the bottom 23% 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.

To follow TOL in the coming trading sessions, be sure to utilize Zacks.com.

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