Toll Brothers (TOL) Falls More Steeply Than Broader Market: What Investors Need to Know
Toll Brothers (TOL) closed the most recent trading day at $133.23, moving -2.69% from the previous trading session. The stock fell short of the S&P 500, which registered a loss of 1.74% for the day. At the same time, the Dow lost 1.01%, and the tech-heavy Nasdaq lost 2.38%.
The stock of home builder has fallen by 12.86% in the past month, lagging the Construction sector's loss of 8.5% and the S&P 500's loss of 4.99%.
Investors will be eagerly watching for the performance of Toll BrothersTOL-- in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $2.57, marking a 26.57% fall compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $2.41 billion, reflecting a 12.05% fall from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $12.71 per share and revenue of $10.64 billion, which would represent changes of -5.78% and -2.97%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Toll Brothers. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.24% increase. Right now, Toll Brothers possesses a Zacks Rank of #3 (Hold).
In the context of valuation, Toll Brothers is at present trading with a Forward P/E ratio of 10.78. This expresses a discount compared to the average Forward P/E of 12.38 of its industry.
Meanwhile, TOL's PEG ratio is currently 1.07. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Building Products - Home Builders stocks are, on average, holding a PEG ratio of 1.68 based on yesterday's closing prices.
The Building Products - Home Builders industry is part of the Construction sector. This industry, currently bearing a Zacks Industry Rank of 236, finds itself in the bottom 4% echelons of all 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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This article originally published on Zacks Investment Research (zacks.com).
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