Toll Brothers (TOL) Sees Increase Amid Market Decline: Important Insights

In the most recent trading session, Toll Brothers (TOL) closed at $148.14, marking a slight increase of +0.5% compared to the previous day's closing price. This performance stood in contrast to the S&P 500, which experienced a daily decline of 0.33%. Meanwhile, the Dow Jones Industrial Average also fell by 0.22%, and the tech-heavy Nasdaq registered a loss of 0.56%.

Leading up to this trading day, Toll Brothers shares have seen a decline of 4.75% over the past month. Concurrently, the broader Construction sector managed to gain 1.4%, and the S&P 500 as a whole rose by 1.83%.

Investors are keenly awaiting Toll Brothers' financial results, which are set to be released soon. Analysts forecast that the company will report earnings per share (EPS) of $4.31, representing a growth of 4.87% from the same quarter last year. Additionally, the Zacks Consensus Estimate projects net sales of approximately $3.16 billion, up 4.59% from the prior year's figures.

For the entire fiscal year, analysts expect Toll Brothers to achieve earnings of $14.53 per share, with total revenue anticipated to reach $10.64 billion. These estimates reflect year-over-year increases of +17.56% and +6.43%, respectively.

Investors may also take note of recent adjustments to analyst estimates for Toll Brothers. Such changes often indicate the latest business trends, with positive outlooks suggesting analysts’ confidence in the company's future profitability.

Research indicates a direct relationship between these estimate changes and stock performance; upward revisions can lead to improved stock outcomes. To measure this effect, the Zacks Rank system provides an effective rating mechanism, moving from #1 (Strong Buy) to #5 (Strong Sell). This ranking system is backed by a solid performance track record, with #1 rated stocks averaging an annual return of +25% since its inception in 1988. Over the last month, the Zacks Consensus EPS estimate for Toll Brothers has risen by 0.11%, leading to a current Zacks Rank of #2 (Buy).

In terms of valuation, Toll Brothers holds a Forward P/E ratio of 10.15, suggesting a premium compared to its industry’s Forward P/E of 9.67.

The company also sports a PEG ratio of 1.11. This metric, similar to the P/E ratio, factors in the expected earnings growth rate, while the average PEG ratio for the Building Products - Home Builders industry stands at 0.91 as of yesterday's market close.

The Building Products - Home Builders industry, to which Toll Brothers belongs, is classified under the broader Construction sector. Notably, this sector holds a Zacks Industry Rank of 88, placing it among the top 35% of over 250 industries evaluated.

The Zacks Industry Rank process analyzes various industry groups based on the average Zacks Rank of the constituent stocks. Historically, industries rated in the top half outperform those in the bottom half by a margin of 2 to 1. Investors can conveniently track all relevant stock metrics and updates through reliable financial news platforms in the upcoming trading sessions.

Toll, Brothers, Stocks