In the latest trading session, Toll Brothers (TOL) closed at $133.87, marking a +1.83% move from the previous day. The stock exceeded the S&P 500, which registered a gain of 0.72% for the day. Elsewhere, the Dow saw an upswing of 0.3%, while the tech-heavy Nasdaq appreciated by 1.35%.

The home builder's stock has climbed by 4.26% in the past month, exceeding the Construction sector's loss of 1.03% and the S&P 500's gain of 1.02%.

Market participants will be closely following the financial results of Toll Brothers in its upcoming release. The company plans to announce its earnings on February 18, 2025. The company's earnings per share (EPS) are projected to be $1.99, reflecting a 11.56% decrease from the same quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $1.9 billion, indicating a 2.56% downward movement from the same quarter last year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $14.15 per share and revenue of $10.99 billion, indicating changes of -5.73% and +1.29%, respectively, compared to the previous year.

Investors might also notice recent changes to analyst estimates for Toll Brothers. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent 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.

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 past month, the Zacks Consensus EPS estimate has moved 0.7% lower. Toll Brothers is currently sporting a Zacks Rank of #3 (Hold).

Investors should also note Toll Brothers's current valuation metrics, including its Forward P/E ratio of 9.29. For comparison, its industry has an average Forward P/E of 8.03, which means Toll Brothers is trading at a premium to the group.

Also, we should mention that TOL has a PEG ratio of 1.14. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As of the close of trade yesterday, the Building Products - Home Builders industry held an average PEG ratio of 0.95.

The Building Products - Home Builders industry is part of the Construction sector. This group has a Zacks Industry Rank of 236, putting it in the bottom 6% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.

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