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Toll Brothers (TOL) Exceeds Market Returns: Some Facts to Consider
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In the latest trading session, Toll Brothers (TOL - Free Report) closed at $156.33, marking a +2.47% move from the previous day. The stock's performance was ahead of the S&P 500's daily gain of 2.35%. Elsewhere, the Dow saw an upswing of 2.15%, while the tech-heavy Nasdaq appreciated by 2.74%.
The home builder's stock has climbed by 14.6% in the past month, exceeding the Construction sector's loss of 5.78% and the S&P 500's loss of 5.6%.
The upcoming earnings release of Toll Brothers will be of great interest to investors. The company is forecasted to report an EPS of $4.89, showcasing a 6.77% upward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.5 billion, up 2.34% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $12.8 per share and revenue of $10.83 billion, which would represent changes of -5.11% and -1.2%, respectively, from the prior year.
Any recent changes to analyst estimates for Toll Brothers should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent 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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.96% increase. Toll Brothers currently has a Zacks Rank of #3 (Hold).
From a valuation perspective, Toll Brothers is currently exchanging hands at a Forward P/E ratio of 10.96. This represents a discount compared to its industry average Forward P/E of 14.82.
We can also see that TOL currently has a PEG ratio of 1.13. 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. As the market closed yesterday, the Building Products - Home Builders industry was having an average PEG ratio of 2.43.
The Building Products - Home Builders industry is part of the Construction sector. At present, this industry carries a Zacks Industry Rank of 236, placing it within the bottom 5% of over 250 industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the 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.
View the Zacks #1 Rank List
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Toll Brothers (TOL) Exceeds Market Returns: Some Facts to Consider
In the latest trading session, Toll Brothers (TOL - Free Report) closed at $156.33, marking a +2.47% move from the previous day. The stock's performance was ahead of the S&P 500's daily gain of 2.35%. Elsewhere, the Dow saw an upswing of 2.15%, while the tech-heavy Nasdaq appreciated by 2.74%.
The home builder's stock has climbed by 14.6% in the past month, exceeding the Construction sector's loss of 5.78% and the S&P 500's loss of 5.6%.
The upcoming earnings release of Toll Brothers will be of great interest to investors. The company is forecasted to report an EPS of $4.89, showcasing a 6.77% upward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.5 billion, up 2.34% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $12.8 per share and revenue of $10.83 billion, which would represent changes of -5.11% and -1.2%, respectively, from the prior year.
Any recent changes to analyst estimates for Toll Brothers should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent 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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.96% increase. Toll Brothers currently has a Zacks Rank of #3 (Hold).
From a valuation perspective, Toll Brothers is currently exchanging hands at a Forward P/E ratio of 10.96. This represents a discount compared to its industry average Forward P/E of 14.82.
We can also see that TOL currently has a PEG ratio of 1.13. 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. As the market closed yesterday, the Building Products - Home Builders industry was having an average PEG ratio of 2.43.
The Building Products - Home Builders industry is part of the Construction sector. At present, this industry carries a Zacks Industry Rank of 236, placing it within the bottom 5% of over 250 industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the 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.