In the latest close session, Toll Brothers (TOL) was up +2.6% at $116.74. The stock's performance was ahead of the S&P 500's daily gain of 0.32%. At the same time, the Dow added 0.53%, and the tech-heavy Nasdaq gained 0.26%.
The home builder's stock has climbed by 8.52% in the past month, exceeding the Construction sector's gain of 4.6% and the S&P 500's gain of 4.51%.
The investment community will be closely monitoring the performance of Toll Brothers in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $3.59, reflecting a 0.28% decrease from the same quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $2.85 billion, indicating a 4.56% upward movement from the same quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $13.95 per share and revenue of $10.93 billion. These totals would mark changes of -7.06% and +0.75%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Toll Brothers. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Toll Brothers is currently sporting a Zacks Rank of #3 (Hold).
Looking at valuation, Toll Brothers is presently trading at a Forward P/E ratio of 8.16. For comparison, its industry has an average Forward P/E of 9.41, which means Toll Brothers is trading at a discount to the group.
It's also important to note that TOL currently trades at a PEG ratio of 1.18. 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. The Building Products - Home Builders was holding an average PEG ratio of 2.23 at yesterday's closing price.
The Building Products - Home Builders industry is part of the Construction sector. Currently, this industry holds a Zacks Industry Rank of 177, positioning it in the bottom 29% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Toll Brothers Inc. (TOL): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
