Toll Brothers (TOL) closed the most recent trading day at $152.53, moving +2.96% from the previous trading session. The stock's change was more than the S&P 500's daily gain of 0.38%. On the other hand, the Dow registered a gain of 0.02%, and the technology-centric Nasdaq increased by 0.9%.
The home builder's shares have seen a decrease of 0.38% over the last month, surpassing the Construction sector's loss of 3.74% and falling behind the S&P 500's gain of 1.27%.
The upcoming earnings release of Toll Brothers will be of great interest to investors. The company is forecasted to report an EPS of $2.9, showcasing a 22.25% downward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $2.6 billion, indicating a 11.81% decline compared to the corresponding quarter of the prior year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $12.69 per share and a revenue of $10.7 billion, indicating changes of -5.93% and -2.44%, respectively, from the former year.
Investors should also note any recent changes to analyst estimates for Toll Brothers. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, there's been a 0.07% rise in the Zacks Consensus EPS estimate. Toll Brothers is currently sporting a Zacks Rank of #3 (Hold).
In the context of valuation, Toll Brothers is at present trading with a Forward P/E ratio of 11.67. This signifies a discount in comparison to the average Forward P/E of 14.45 for its industry.
It is also worth noting that TOL currently has a PEG ratio of 1.22. 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. The Building Products - Home Builders industry currently had an average PEG ratio of 2.42 as of yesterday's close.
The Building Products - Home Builders industry is part of the Construction sector. This industry, currently bearing a Zacks Industry Rank of 194, finds itself in the bottom 22% echelons of all 250+ industries.
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.
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 Report
This article originally published on Zacks Investment Research (zacks.com).