Toll Brothers (TOL) ended the recent trading session at $140.13, demonstrating a -1.28% change from the preceding day's closing price. The stock trailed the S&P 500, which registered a daily gain of 0.8%. On the other hand, the Dow registered a loss of 0.15%, and the technology-centric Nasdaq increased by 1.6%.
The home builder's shares have seen an increase of 0.3% over the last month, not keeping up with the Construction sector's gain of 7.69% and the S&P 500's gain of 5.15%.
The investment community will be paying close attention to the earnings performance of Toll Brothers in its upcoming release. The company is predicted to post an EPS of $2.57, indicating a 26.57% decline compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $2.41 billion, indicating a 12.05% decrease compared to the same quarter of the previous year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $12.71 per share and revenue of $10.64 billion, indicating changes of -5.78% and -2.97%, respectively, compared to the previous year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Toll Brothers. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. 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 11.17. This indicates a discount in contrast to its industry's Forward P/E of 13.45.
One should further note that TOL currently holds a PEG ratio of 1.11. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Building Products - Home Builders industry had an average PEG ratio of 1.71.
The Building Products - Home Builders industry is part of the Construction sector. This group has a Zacks Industry Rank of 216, putting it in the bottom 12% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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).