In This Article:
Toll Brothers (TOL) closed at $126.23 in the latest trading session, marking a +1.34% move from the prior day. The stock outpaced the S&P 500's daily gain of 1.26%. Elsewhere, the Dow saw an upswing of 0.8%, while the tech-heavy Nasdaq appreciated by 1.77%.
Prior to today's trading, shares of the home builder had lost 19.19% over the past month. This has lagged the Construction sector's loss of 12.76% and the S&P 500's loss of 2.82% in that time.
The investment community will be paying close attention to the earnings performance of Toll Brothers in its upcoming release. On that day, Toll Brothers is projected to report earnings of $1.99 per share, which would represent a year-over-year decline of 11.56%. At the same time, our most recent consensus estimate is projecting a revenue of $1.9 billion, reflecting a 2.56% fall from the equivalent quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $14.25 per share and a revenue of $10.99 billion, representing changes of -5.06% and +1.29%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Toll Brothers. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 2.12% lower within the past month. Toll Brothers is currently a Zacks Rank #3 (Hold).
Looking at valuation, Toll Brothers is presently trading at a Forward P/E ratio of 8.74. This denotes a premium relative to the industry's average Forward P/E of 7.77.
One should further note that TOL currently holds a PEG ratio of 0.95. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Building Products - Home Builders industry had an average PEG ratio of 0.66 as trading concluded yesterday.
The Building Products - Home Builders industry is part of the Construction sector. This industry currently has a Zacks Industry Rank of 172, which puts it in the bottom 32% of all 250+ industries.