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Toll Brothers (TOL) Stock Sinks As Market Gains: Here's Why
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In the latest trading session, Toll Brothers (TOL - Free Report) closed at $149.23, marking a -2.69% move from the previous day. The stock's change was less than the S&P 500's daily gain of 0.37%. Elsewhere, the Dow saw a downswing of 0.38%, while the tech-heavy Nasdaq appreciated by 0.83%.
The home builder's stock has climbed by 13.27% in the past month, exceeding the Construction sector's gain of 1.5% and the S&P 500's loss of 2.29%.
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 per share (EPS) are projected to be $4.89, reflecting a 6.77% increase from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $3.51 billion, indicating a 2.44% growth compared to the corresponding quarter of the prior year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $12.8 per share and a revenue of $10.84 billion, signifying shifts of -5.11% and -1.18%, respectively, from the last year.
Investors might also notice recent changes to analyst estimates for Toll Brothers. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Toll Brothers is currently a Zacks Rank #3 (Hold).
In terms of valuation, Toll Brothers is currently trading at a Forward P/E ratio of 11.13. This indicates a discount in contrast to its industry's Forward P/E of 14.3.
Investors should also note that TOL has a PEG ratio of 1.15 right now. 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. TOL's industry had an average PEG ratio of 2.4 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 235, finds itself in the bottom 5% echelons of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the 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
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Toll Brothers (TOL) Stock Sinks As Market Gains: Here's Why
In the latest trading session, Toll Brothers (TOL - Free Report) closed at $149.23, marking a -2.69% move from the previous day. The stock's change was less than the S&P 500's daily gain of 0.37%. Elsewhere, the Dow saw a downswing of 0.38%, while the tech-heavy Nasdaq appreciated by 0.83%.
The home builder's stock has climbed by 13.27% in the past month, exceeding the Construction sector's gain of 1.5% and the S&P 500's loss of 2.29%.
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 per share (EPS) are projected to be $4.89, reflecting a 6.77% increase from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $3.51 billion, indicating a 2.44% growth compared to the corresponding quarter of the prior year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $12.8 per share and a revenue of $10.84 billion, signifying shifts of -5.11% and -1.18%, respectively, from the last year.
Investors might also notice recent changes to analyst estimates for Toll Brothers. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Toll Brothers is currently a Zacks Rank #3 (Hold).
In terms of valuation, Toll Brothers is currently trading at a Forward P/E ratio of 11.13. This indicates a discount in contrast to its industry's Forward P/E of 14.3.
Investors should also note that TOL has a PEG ratio of 1.15 right now. 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. TOL's industry had an average PEG ratio of 2.4 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 235, finds itself in the bottom 5% echelons of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the 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.