Toll Brothers (TOL) ended the recent trading session at $100.50, demonstrating a -0.61% swing from the preceding day's closing price. The stock's performance was behind the S&P 500's daily gain of 0.58%. On the other hand, the Dow registered a gain of 0.75%, and the technology-centric Nasdaq increased by 0.55%.
Heading into today, shares of the home builder had lost 4.23% over the past month, lagging the Construction sector's loss of 1.18% and the S&P 500's loss of 0.84% in that time.
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 $2.86 per share. This would mark a year-over-year decline of 15.38%. Meanwhile, the latest consensus estimate predicts the revenue to be $2.5 billion, indicating a 11.76% decrease compared to the same quarter of the previous year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $13.74 per share and a revenue of $10.89 billion, representing changes of -8.46% and +0.35%, respectively, from the prior year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Toll Brothers. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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 0.41% decrease. As of now, Toll Brothers holds a Zacks Rank of #3 (Hold).
Investors should also note Toll Brothers's current valuation metrics, including its Forward P/E ratio of 7.36. Its industry sports an average Forward P/E of 7.57, so one might conclude that Toll Brothers is trading at a discount comparatively.
Meanwhile, TOL's PEG ratio is currently 1.07. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Building Products - Home Builders stocks are, on average, holding a PEG ratio of 1.27 based on yesterday's closing prices.
The Building Products - Home Builders industry is part of the Construction sector. At present, this industry carries a Zacks Industry Rank of 171, placing it within the bottom 32% of over 250 industries.
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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming 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
