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Toll Brothers (TOL) Dips More Than Broader Markets: What You Should Know

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Toll Brothers (TOL - Free Report) closed the most recent trading day at $59.50, moving -1.54% from the previous trading session. This move lagged the S&P 500's daily loss of 0.51%.

Coming into today, shares of the home builder had gained 5.04% in the past month. In that same time, the Construction sector gained 2.22%, while the S&P 500 gained 3.08%.

Wall Street will be looking for positivity from TOL as it approaches its next earnings report date. In that report, analysts expect TOL to post earnings of $2.52 per share. This would mark year-over-year growth of 62.58%. Meanwhile, our latest consensus estimate is calling for revenue of $2.91 billion, up 14.46% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $6.12 per share and revenue of $8.66 billion, which would represent changes of +80% and +22.39%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for TOL. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. TOL is holding a Zacks Rank of #2 (Buy) right now.

Looking at its valuation, TOL is holding a Forward P/E ratio of 9.87. Its industry sports an average Forward P/E of 6.83, so we one might conclude that TOL is trading at a premium comparatively.

The Building Products - Home Builders industry is part of the Construction sector. This group has a Zacks Industry Rank of 96, putting it in the top 38% 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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