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Toll Brothers (TOL) Soars 3.6%: Is Further Upside Left in the Stock?
Toll Brothers (TOL - Free Report) shares soared 3.6% in the last trading session to close at $139.91. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 6.8% gain over the past four weeks.
Shares of this American homebuilding company have gained on the back of the optimism surrounding the housing market. Despite the constrictions from the rising mortgage rates, the recent new home sales data showcased solid demand trends for single-family housing, with increased construction starts and building permits. The investors’ sentiments are likely to have been boosted by the improving momentum across the housing market in the country, indicating high prospects for 2025.
This home builder is expected to post quarterly earnings of $1.99 per share in its upcoming report, which represents a year-over-year change of -11.6%. Revenues are expected to be $1.9 billion, down 2.6% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Toll Brothers, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on TOL going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Toll Brothers is part of the Zacks Building Products - Home Builders industry. Tri Pointe Homes (TPH - Free Report) , another stock in the same industry, closed the last trading session 3.1% higher at $38.48. TPH has returned 3.1% in the past month.
For Tri Pointe, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $1.26. This represents a change of -7.4% from what the company reported a year ago. Tri Pointe currently has a Zacks Rank of #3 (Hold).