Toll Brothers (TOL) closed the most recent trading day at $120.26, moving +1.93% from the previous trading session. The stock's change was more than the S&P 500's daily gain of 0.48%. Elsewhere, the Dow lost 0.02%, while the tech-heavy Nasdaq added 0.94%.
The home builder's stock has climbed by 11.85% in the past month, exceeding the Construction sector's gain of 6.17% and the S&P 500's gain of 5.13%.
The investment community will be closely monitoring the performance of Toll Brothers in its forthcoming earnings report. The company's upcoming EPS is projected at $3.59, signifying a 0.28% drop compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $2.85 billion, indicating a 4.56% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $13.95 per share and revenue of $10.93 billion, which would represent 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 such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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 remained unchanged. Toll Brothers is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, Toll Brothers is holding a Forward P/E ratio of 8.46. This signifies a discount in comparison to the average Forward P/E of 10.41 for its industry.
It is also worth noting that TOL currently has a PEG ratio of 1.23. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. As the market closed yesterday, the Building Products - Home Builders industry was having an average PEG ratio of 2.26.
The Building Products - Home Builders industry is part of the Construction sector. At present, this industry carries a Zacks Industry Rank of 212, placing it within the bottom 15% of over 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.
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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