Toll Brothers (TOL) ended the recent trading session at $122.63, demonstrating a +1.02% change from the preceding day's closing price. This move outpaced the S&P 500's daily gain of 0.28%. Elsewhere, the Dow saw an upswing of 0.43%, while the tech-heavy Nasdaq appreciated by 0.09%.
Shares of the home builder have appreciated by 10.97% over the course of the past month, outperforming the Construction sector's gain of 5.19%, and the S&P 500's gain of 4.37%.
Analysts and investors alike will be keeping a close eye on the performance of Toll Brothers in its upcoming earnings disclosure. The company's upcoming EPS is projected at $3.59, signifying a 0.28% drop compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $2.85 billion, reflecting a 4.56% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $13.95 per share and a revenue of $10.93 billion, demonstrating changes of -7.06% and +0.75%, respectively, from the preceding 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. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Toll Brothers is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Toll Brothers is presently being traded at a Forward P/E ratio of 8.7. This represents a discount compared to its industry average Forward P/E of 9.91.
One should further note that TOL currently holds a PEG ratio of 1.26. 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 2.34.
The Building Products - Home Builders industry is part of the Construction sector. This industry currently has a Zacks Industry Rank of 195, which puts it in the bottom 22% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Toll Brothers Inc. (TOL): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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