Toll Brothers (TOL) closed the most recent trading day at $135.71, moving +1.01% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.53%. Elsewhere, the Dow saw an upswing of 0.52%, while the tech-heavy Nasdaq appreciated by 0.52%.
Prior to today's trading, shares of the home builder had lost 3.93% lagged the Construction sector's loss of 1.13% and the S&P 500's gain of 0.71%.
The investment community will be paying close attention to the earnings performance of Toll Brothers in its upcoming release. The company's earnings per share (EPS) are projected to be $4.91, reflecting a 6.05% increase from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $3.32 billion, reflecting a 0.28% fall from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $13.82 per share and revenue of $10.85 billion, which would represent changes of -7.93% and +0.06%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Toll Brothers. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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, 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 past month, there's been no change in the Zacks Consensus EPS estimate. Right now, Toll Brothers possesses a Zacks Rank of #4 (Sell).
From a valuation perspective, Toll Brothers is currently exchanging hands at a Forward P/E ratio of 9.72. This signifies a discount in comparison to the average Forward P/E of 11.65 for its industry.
We can also see that TOL currently has a PEG ratio of 1.59. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Building Products - Home Builders industry stood at 3.18 at the close of the market yesterday.
The Building Products - Home Builders industry is part of the Construction sector. Currently, this industry holds a Zacks Industry Rank of 222, positioning it in the bottom 11% 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.
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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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