In the latest close session, Toll Brothers (TOL) was up +1.74% at $127.17. The stock outpaced the S&P 500's daily loss of 0.49%. Meanwhile, the Dow lost 0.14%, and the Nasdaq, a tech-heavy index, lost 0.65%.
Shares of the home builder witnessed a gain of 7.46% over the previous month, beating the performance of the Construction sector with its gain of 2.75%, and the S&P 500's gain of 0.96%.
The upcoming earnings release of Toll Brothers will be of great interest to investors. The company's earnings report is expected on August 19, 2025. The company's earnings per share (EPS) are projected to be $3.59, reflecting a 0.28% decrease from the same quarter last 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.
TOL's full-year Zacks Consensus Estimates are calling for earnings of $13.95 per share and revenue of $10.93 billion. These results would represent year-over-year changes of -7.06% and +0.75%, respectively.
It is also important to note the recent changes to analyst estimates for Toll Brothers. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Toll Brothers is currently a Zacks Rank #3 (Hold).
Looking at valuation, Toll Brothers is presently trading at a Forward P/E ratio of 8.96. Its industry sports an average Forward P/E of 11.1, so one might conclude that Toll Brothers is trading at a discount comparatively.
We can also see that TOL currently has a PEG ratio of 1.3. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Building Products - Home Builders was holding an average PEG ratio of 2.28 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 227, positioning it in the bottom 9% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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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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