Toll Brothers (TOL) ended the recent trading session at $146.95, demonstrating a +1.08% change from the preceding day's closing price. This move outpaced the S&P 500's daily gain of 0.16%. At the same time, the Dow added 0.17%, and the tech-heavy Nasdaq gained 0.26%.
Coming into today, shares of the home builder had gained 4.48% in the past month. In that same time, the Construction sector gained 5.01%, while the S&P 500 gained 1.89%.
Investors will be eagerly watching for the performance of Toll Brothers in its upcoming earnings disclosure. The company is forecasted to report an EPS of $2.06, showcasing a 17.71% upward movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $1.85 billion, down 0.29% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $12.61 per share and revenue of $10.5 billion, which would represent changes of -6.52% and -4.22%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Toll Brothers. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
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 has shifted 6% downward. As of now, Toll Brothers holds a Zacks Rank of #5 (Strong Sell).
In terms of valuation, Toll Brothers is currently trading at a Forward P/E ratio of 11.53. This denotes a discount relative to the industry average Forward P/E of 12.48.
Meanwhile, TOL's PEG ratio is currently 1.21. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Building Products - Home Builders was holding an average PEG ratio of 1.74 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 235, which puts it in the bottom 5% 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in 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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