Toll Brothers (TOL) closed the most recent trading day at $119.45, moving -2.78% from the previous trading session. The stock fell short of the S&P 500, which registered a loss of 0.13% for the day. At the same time, the Dow lost 0.39%, and the tech-heavy Nasdaq gained 0.15%.
Shares of the home builder have appreciated by 4.14% over the course of the past month, underperforming the Construction sector's gain of 6.66%, and outperforming the S&P 500's gain of 3.39%.
The investment community will be closely monitoring the performance of Toll Brothers in its forthcoming earnings report. The company's upcoming EPS is projected at $3.59, signifying a 0.28% drop compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $2.85 billion, showing a 4.56% escalation compared to the year-ago quarter.
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.
Any recent changes to analyst estimates for Toll Brothers should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. As of now, Toll Brothers holds a Zacks Rank of #3 (Hold).
Looking at valuation, Toll Brothers is presently trading at a Forward P/E ratio of 8.81. This denotes a discount relative to the industry average Forward P/E of 10.22.
We can additionally observe that TOL currently boasts a PEG ratio of 1.28. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Building Products - Home Builders was holding an average PEG ratio of 2.24 at yesterday's closing price.
The Building Products - Home Builders industry is part of the Construction sector. This industry currently has a Zacks Industry Rank of 216, which puts it in the bottom 13% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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
