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Toll Brothers (TOL) ended the recent trading session at $151.74, demonstrating a -0.44% swing from the preceding day's closing price. The stock's performance was behind the S&P 500's daily gain of 0.4%. Meanwhile, the Dow experienced a drop of 0.28%, and the technology-dominated Nasdaq saw an increase of 1.04%.
Prior to today's trading, shares of the home builder had lost 0.67% over the past month. This has was narrower than the Construction sector's loss of 1.56% and lagged the S&P 500's gain of 0.62% in that time.
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 December 9, 2024. The company is predicted to post an EPS of $4.31, indicating a 4.87% growth compared to the equivalent quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $3.16 billion, showing a 4.59% escalation compared to the year-ago quarter.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Toll Brothers. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.22% lower. Currently, Toll Brothers is carrying a Zacks Rank of #3 (Hold).
Looking at valuation, Toll Brothers is presently trading at a Forward P/E ratio of 10.47. This indicates a premium in contrast to its industry's Forward P/E of 9.37.
We can additionally observe that TOL currently boasts a PEG ratio of 1.14. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Building Products - Home Builders industry had an average PEG ratio of 0.67.
The Building Products - Home Builders industry is part of the Construction sector. With its current Zacks Industry Rank of 80, this industry ranks in the top 32% of all industries, numbering over 250.