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Toll Brothers (TOL) Outpaces Stock Market Gains: What You Should Know

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Toll Brothers (TOL - Free Report) closed the most recent trading day at $61.39, moving +0.54% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.26%.

Prior to today's trading, shares of the home builder had gained 14.52% over the past month. This has outpaced the Construction sector's gain of 6.64% and the S&P 500's gain of 2.37% in that time.

Wall Street will be looking for positivity from TOL as it approaches its next earnings report date. This is expected to be August 24, 2021. The company is expected to report EPS of $1.52, up 68.89% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.22 billion, up 34.23% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $5.61 per share and revenue of $8.72 billion, which would represent changes of +65% and +23.18%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for TOL. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. TOL is currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, TOL is currently trading at a Forward P/E ratio of 10.88. For comparison, its industry has an average Forward P/E of 7.06, which means TOL is trading at a premium to the group.

The Building Products - Home Builders industry is part of the Construction sector. This group has a Zacks Industry Rank of 60, putting it in the top 24% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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