Back to top

Image: Bigstock

Toll Brothers (TOL) Gains As Market Dips: What You Should Know

Read MoreHide Full Article

Toll Brothers (TOL - Free Report) closed the most recent trading day at $54.08, moving +0.13% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.38%. Meanwhile, the Dow lost 0.5%, and the Nasdaq, a tech-heavy index, lost 0.05%.

Coming into today, shares of the home builder had lost 18.71% in the past month. In that same time, the Construction sector lost 10.12%, while the S&P 500 lost 6.25%.

Toll Brothers will be looking to display strength as it nears its next earnings release, which is expected to be February 22, 2022. In that report, analysts expect Toll Brothers to post earnings of $1.12 per share. This would mark year-over-year growth of 47.37%. Our most recent consensus estimate is calling for quarterly revenue of $1.77 billion, up 13.24% from the year-ago period.

TOL's full-year Zacks Consensus Estimates are calling for earnings of $9.94 per share and revenue of $10.35 billion. These results would represent year-over-year changes of +49.92% and +17.73%, respectively.

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.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.

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 2.43% higher within the past month. Toll Brothers currently has a Zacks Rank of #2 (Buy).

In terms of valuation, Toll Brothers is currently trading at a Forward P/E ratio of 5.44. For comparison, its industry has an average Forward P/E of 4.58, which means Toll Brothers is trading at a premium to the group.

It is also worth noting that TOL currently has a PEG ratio of 0.21. 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. The Building Products - Home Builders industry currently had an average PEG ratio of 0.51 as of yesterday's close.

The Building Products - Home Builders industry is part of the Construction sector. This industry currently has a Zacks Industry Rank of 13, which puts it in the top 6% 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.

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


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Toll Brothers Inc. (TOL) - free report >>

Published in