Toll Brothers (TOL) closed the most recent trading day at $153.24, moving +1.85% from the previous trading session. The stock exceeded the S&P 500, which registered a gain of 1.79% for the day. On the other hand, the Dow registered a gain of 1.71%, and the technology-centric Nasdaq increased by 2.59%.
Prior to today's trading, shares of the home builder had lost 3.01% was narrower than the Construction sector's loss of 3.64% and lagged the S&P 500's gain of 1.72%.
The investment community will be closely monitoring the performance of Toll Brothers in its forthcoming earnings report. The company is scheduled to release its earnings on August 18, 2026. The company's upcoming EPS is projected at $2.9, signifying a 22.25% drop compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $2.6 billion, down 11.81% from the prior-year quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $12.69 per share and a revenue of $10.7 billion, representing changes of -5.93% and -2.44%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Toll Brothers. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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, 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. Within the past 30 days, our consensus EPS projection remained stagnant. Currently, Toll Brothers is carrying a Zacks Rank of #3 (Hold).
With respect to valuation, Toll Brothers is currently being traded at a Forward P/E ratio of 11.85. For comparison, its industry has an average Forward P/E of 14.17, which means Toll Brothers is trading at a discount to the group.
We can additionally observe that TOL currently boasts a PEG ratio of 1.24. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Building Products - Home Builders industry had an average PEG ratio of 2.86 as trading concluded yesterday.
The Building Products - Home Builders industry is part of the Construction sector. At present, this industry carries a Zacks Industry Rank of 169, placing it within the bottom 32% of over 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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This article originally published on Zacks Investment Research (zacks.com).