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Toll Brothers (TOL) Gains But Lags Market: What You Should Know

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Toll Brothers (TOL - Free Report) closed the most recent trading day at $129.19, moving +0.84% from the previous trading session. The stock trailed the S&P 500, which registered a daily gain of 1.04%. Meanwhile, the Dow gained 0.76%, and the Nasdaq, a tech-heavy index, added 1.03%.

The home builder's stock has climbed by 15.68% in the past month, exceeding the Construction sector's gain of 7.51% and the S&P 500's loss of 6.74%.

Analysts and investors alike will be keeping a close eye on the performance of Toll Brothers in its upcoming earnings disclosure. The company's earnings report is set to go public on August 20, 2024. It is anticipated that the company will report an EPS of $3.28, marking a 12.06% fall compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $2.7 billion, indicating a 0.32% growth compared to the corresponding quarter of the prior year.

TOL's full-year Zacks Consensus Estimates are calling for earnings of $14.11 per share and revenue of $10.46 billion. These results would represent year-over-year changes of +14.16% and +4.6%, respectively.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Toll Brothers. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Toll Brothers currently has a Zacks Rank of #3 (Hold).

Looking at its valuation, Toll Brothers is holding a Forward P/E ratio of 9.08. This indicates a premium in contrast to its industry's Forward P/E of 8.85.

Meanwhile, TOL's PEG ratio is currently 0.96. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Building Products - Home Builders industry currently had an average PEG ratio of 0.88 as of yesterday's close.

The Building Products - Home Builders industry is part of the Construction sector. This group has a Zacks Industry Rank of 16, putting it in the top 7% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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