In the latest close session, Toll Brothers (TOL) was down 1.79% at $144.92. The stock's change was less than the S&P 500's daily gain of 0.03%. At the same time, the Dow lost 0.58%, and the tech-heavy Nasdaq gained 0.28%.
Shares of the home builder have appreciated by 5.72% over the course of the past month, underperforming the Construction sector's gain of 6.96%, and outperforming the S&P 500's gain of 0.6%.
Investors will be eagerly watching for the performance of Toll Brothers in its upcoming earnings disclosure. In that report, analysts expect Toll Brothers to post earnings of $2.05 per share. This would mark year-over-year growth of 17.14%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.84 billion, down 0.87% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $12.69 per share and revenue of $10.4 billion, indicating changes of -5.93% and -5.14%, respectively, compared to the previous year.
Any recent changes to analyst estimates for Toll Brothers should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.63% decrease. Toll Brothers is currently sporting a Zacks Rank of #5 (Strong Sell).
Looking at valuation, Toll Brothers is presently trading at a Forward P/E ratio of 11.63. This represents a discount compared to its industry average Forward P/E of 13.49.
We can additionally observe that TOL currently boasts a PEG ratio of 1.16. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. By the end of yesterday's trading, the Building Products - Home Builders industry had an average PEG ratio of 1.8.
The Building Products - Home Builders industry is part of the Construction sector. With its current Zacks Industry Rank of 242, this industry ranks in the bottom 2% of all industries, numbering over 250.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next 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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