Toll Brothers (TOL) closed at $103.97 in the latest trading session, marking a -0.35% move from the prior day. The stock's change was more than the S&P 500's daily loss of 0.64%. Elsewhere, the Dow lost 0.24%, while the tech-heavy Nasdaq lost 0.74%.
Shares of the home builder have appreciated by 3.44% over the course of the past month, outperforming the Construction sector's gain of 3.03% and the S&P 500's gain of 0.38%.
Market participants will be closely following the financial results of Toll Brothers in its upcoming release. The company plans to announce its earnings on May 20, 2025. It is anticipated that the company will report an EPS of $2.86, marking a 15.38% fall compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $2.5 billion, indicating a 11.76% decline compared to the corresponding quarter of the prior year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $13.74 per share and revenue of $10.89 billion. These totals would mark changes of -8.46% and +0.35%, respectively, from last year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Toll Brothers. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.41% lower. Toll Brothers presently features a Zacks Rank of #3 (Hold).
From a valuation perspective, Toll Brothers is currently exchanging hands at a Forward P/E ratio of 7.59. This indicates a discount in contrast to its industry's Forward P/E of 9.04.
Also, we should mention that TOL has a PEG ratio of 1.1. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the Building Products - Home Builders industry was having an average PEG ratio of 1.27.
The Building Products - Home Builders industry is part of the Construction sector. With its current Zacks Industry Rank of 192, this industry ranks in the bottom 23% of all industries, numbering over 250.
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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming 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
