In the latest market close, Toll Brothers (TOL – Free Report) reached $109.22, with a -1.53% movement compared to the previous day. This change lagged the S&P 500’s 1.12% loss on the day. On the other hand, the Dow registered a loss of 0.31%, and the technology-centric Nasdaq decreased by 2.04%.
The home builder’s stock has dropped by 3.21% in the past month, falling short of the Construction sector’s loss of 1.75% and the S&P 500’s loss of 2.91%.
Market participants will be closely following the financial results of Toll Brothers in its upcoming release. On that day, Toll Brothers is projected to report earnings of $2.88 per share, which would represent a year-over-year decline of 14.79%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.5 billion, down 11.76% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $13.80 per share and revenue of $10.89 billion. These totals would mark changes of -8.06% and +0.35%, respectively, from last year.
It’s also important for investors to be aware of any recent modifications to analyst estimates for Toll Brothers. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company’s business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we’ve crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. The Zacks Consensus EPS estimate has moved 0.13% lower within the past month. Toll Brothers currently has a Zacks Rank of #3 (Hold).
Investors should also note Toll Brothers’s current valuation metrics, including its Forward P/E ratio of 8.04. This expresses a discount compared to the average Forward P/E of 8.47 of its industry.
We can also see that TOL currently has a PEG ratio of 1.17. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock’s expected earnings growth rate. As of the close of trade yesterday, the Building Products – Home Builders industry held an average PEG ratio of 0.99.
The Building Products – Home Builders industry is part of the Construction sector. With its current Zacks Industry Rank of 221, this industry ranks in the bottom 12% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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