Toll Brothers (TOL) closed at $111.31 in the latest trading session, marking a -1.76% move from the prior day. At the same time, the Dow lost 0.25%, and the tech-heavy Nasdaq gained 0.31%.
The stock of home builder has risen by 4.98% in the past month, leading the Construction sector's gain of 3.5% and undershooting the S&P 500's gain of 5.05%.
The upcoming earnings release of Toll Brothers will be of great interest to investors. The company's upcoming EPS is projected at $3.59, signifying a 0.28% drop compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $2.85 billion, showing a 4.56% escalation compared to the year-ago quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $13.95 per share and a revenue of $10.93 billion, representing changes of -7.06% and +0.75%, respectively, from the prior year.
Investors should also take note of any recent adjustments 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 demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.63% higher. Right now, Toll Brothers possesses a Zacks Rank of #3 (Hold).
Looking at valuation, Toll Brothers is presently trading at a Forward P/E ratio of 8.12. For comparison, its industry has an average Forward P/E of 9.76, which means Toll Brothers is trading at a discount to the group.
Meanwhile, TOL's PEG ratio is currently 1.18. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Building Products - Home Builders industry held an average PEG ratio of 2.12.
The Building Products - Home Builders industry is part of the Construction sector. This group has a Zacks Industry Rank of 229, putting it in the bottom 7% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.
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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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