Toll Brothers (TOL) ended the recent trading session at $141.95, demonstrating a +1.1% change from the preceding day's closing price. The stock outpaced the S&P 500's daily gain of 0.6%. Elsewhere, the Dow gained 0.03%, while the tech-heavy Nasdaq added 1.18%.
The home builder's shares have seen an increase of 2.85% over the last month, surpassing the Construction sector's loss of 6.52% and the S&P 500's loss of 0.79%.
Investors will be eagerly watching for the performance of Toll Brothers in its upcoming earnings disclosure. The company is predicted to post an EPS of $4.89, indicating a 6.77% growth compared to the equivalent quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $3.51 billion, showing a 2.44% escalation compared to the year-ago quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $12.8 per share and a revenue of $10.84 billion, signifying shifts of -5.11% and -1.18%, respectively, from the last year.
Any recent changes to analyst estimates for Toll Brothers should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.08% lower. At present, Toll Brothers boasts a Zacks Rank of #3 (Hold).
With respect to valuation, Toll Brothers is currently being traded at a Forward P/E ratio of 10.97. Its industry sports an average Forward P/E of 12.9, so one might conclude that Toll Brothers is trading at a discount comparatively.
We can also see that TOL currently has a PEG ratio of 1.13. 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 2.34 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 233, placing it within the bottom 6% of over 250 industries.
The Zacks Industry Rank gauges the strength of our individual 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Toll Brothers Inc. (TOL): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).