In the latest market close, Toll Brothers (TOL – Free Report) reached $126.45, with a -1.39% movement compared to the previous day. The stock’s performance was behind the S&P 500’s daily loss of 1.11%. Elsewhere, the Dow saw a downswing of 0.77%, while the tech-heavy Nasdaq depreciated by 1.49%.
Prior to today’s trading, shares of the home builder had lost 22.17% over the past month. This has lagged the Construction sector’s loss of 10.86% and the S&P 500’s gain of 0.4% in that time.
The upcoming earnings release of Toll Brothers will be of great interest to investors. The company is predicted to post an EPS of $1.99, indicating a 11.56% decline compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $1.9 billion, down 2.56% from the prior-year quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $14.25 per share and revenue of $10.99 billion, indicating changes of -5.06% and +1.29%, respectively, compared to the previous year.
Any recent changes to analyst estimates for Toll Brothers should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company’s business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent 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, 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 2.12% lower within the past month. Toll Brothers currently has a Zacks Rank of #3 (Hold).
In the context of valuation, Toll Brothers is at present trading with a Forward P/E ratio of 9. This valuation marks a premium compared to its industry’s average Forward P/E of 8.03.
We can additionally observe that TOL currently boasts a PEG ratio of 0.98. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company’s expected earnings growth trajectory. The Building Products – Home Builders industry currently had an average PEG ratio of 0.68 as of yesterday’s close.
The Building Products – Home Builders industry is part of the Construction sector. This industry currently has a Zacks Industry Rank of 169, which puts it in the bottom 33% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow TOL in the coming trading sessions, be sure to utilize Zacks.com.
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