In the latest market close, Toll Brothers (TOL) reached $134.31, with a +0.06% movement compared to the previous day. This change outpaced the S&P 500's 0.21% loss on the day. Meanwhile, the Dow experienced a drop of 0.16%, and the technology-dominated Nasdaq saw a decrease of 0.89%.
The home builder's stock has climbed by 6.77% in the past month, exceeding the Construction sector's loss of 4.36% and the S&P 500's loss of 1.56%.
The investment community will be paying close attention to the earnings performance of Toll Brothers in its upcoming release. On that day, Toll Brothers is projected to report earnings of $1.99 per share, which would represent a year-over-year decline of 11.56%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.9 billion, down 2.56% from the year-ago period.
TOL's full-year Zacks Consensus Estimates are calling for earnings of $14.25 per share and revenue of $10.99 billion. These results would represent year-over-year changes of -5.06% and +1.29%, respectively.
Investors might also notice recent changes to analyst estimates for Toll Brothers. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.58% lower within the past month. Toll Brothers is holding a Zacks Rank of #3 (Hold) right now.
In the context of valuation, Toll Brothers is at present trading with a Forward P/E ratio of 9.42. Its industry sports an average Forward P/E of 8.24, so one might conclude that Toll Brothers is trading at a premium comparatively.
Meanwhile, TOL's PEG ratio is currently 1.02. 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. By the end of yesterday's trading, the Building Products - Home Builders industry had an average PEG ratio of 0.8.
The Building Products - Home Builders industry is part of the Construction sector. This industry currently has a Zacks Industry Rank of 189, which puts it in the bottom 25% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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