Toll Brothers (TOL) Sees Gains Amid Market Decline: Key Insights

In the recent trading session, Toll Brothers (TOL - Free Report) closed at $148.14, marking an increase of +0.5% compared to its previous closing price. This performance stands out as the broader market faced a downturn, with the S&P 500 dropping by 0.33%. Furthermore, the Dow Jones Industrial Average lost 0.22%, while the Nasdaq Composite experienced a decline of 0.56%.

Over the past month, shares of Toll Brothers have seen a decrease of 4.75%. In contrast, the Construction sector reported a modest gain of 1.4%, and the S&P 500 increased by 1.83% during the same period.

Investors are now keenly anticipating Toll Brothers' forthcoming financial report. Analysts predict that the company will announce earnings per share (EPS) of $4.31, representing an increase of 4.87% compared to the same quarter last year. Additionally, the Zacks Consensus Estimate forecasts revenue to reach $3.16 billion, which would be a 4.59% rise from the previous year.

For the full year ahead, analysts are estimating earnings of $14.53 per share and a total revenue of $10.64 billion. If these projections hold true, they would reflect growth of +17.56% for earnings and +6.43% for revenue compared to the last year.

Recent adjustments in analyst estimates for Toll Brothers could indicate shifting views on the company's near-term performance. When these estimates are revised upward, it often reflects heightened optimism among analysts regarding the company's profitability.

Research indicates that these estimate changes may directly correlate with fluctuations in the stock's price performance over a short period. To help investors navigate this, a unique rating system known as the Zacks Rank has been developed, which takes these estimate changes into account.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell) and boasts a commendable record of outperforming the market, with #1 stocks achieving an average annual return of +25% since 1988. Notably, over the past 30 days, the Zacks Consensus EPS estimate for Toll Brothers has seen a slight increase of 0.11%, and the stock currently holds a Zacks Rank of #2 (Buy).

Examining the company's valuation, it reveals a Forward P/E ratio of 10.15, which is higher than the industry's Forward P/E ratio of 9.67. Moreover, Toll Brothers has a PEG ratio of 1.11, a measure related to the P/E ratio but also considers expected earnings growth. In comparison, the average PEG ratio for the Building Products - Home Builders sector stood at 0.91 at the close of the previous trading day.

The Building Products - Home Builders sector is a part of the broader Construction market, which holds a Zacks Industry Rank of 88, placing it in the upper 35% of all industries tracked.

The Zacks Industry Rank provides insight into the relative strength of different industry groups by averaging the Zacks Ranks of individual stocks. Research shows that industries in the top half typically outperform those in the bottom half by a factor of 2 to 1.

Stay tuned to follow these stock-driven metrics and more as market conditions evolve.

Toll, Brothers, Market