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Toll Brothers (TOL) Advances While Market Declines: Some Information for Investors

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The most recent trading session ended with Toll Brothers (TOL - Free Report) standing at $164.75, reflecting a +0.36% shift from the previouse trading day's closing. The stock exceeded the S&P 500, which registered a loss of 0.38% for the day. On the other hand, the Dow registered a loss of 0.31%, and the technology-centric Nasdaq decreased by 0.59%.

Coming into today, shares of the home builder had gained 11.37% in the past month. In that same time, the Construction sector gained 7.07%, while the S&P 500 gained 3.76%.

The upcoming earnings release of Toll Brothers will be of great interest to investors. The company's earnings report is expected on December 9, 2024. It is anticipated that the company will report an EPS of $4.31, marking a 4.87% rise compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $3.16 billion, indicating a 4.59% growth compared to the corresponding quarter of the prior year.

Any recent changes to analyst estimates for Toll Brothers should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.35% lower. Toll Brothers is currently a Zacks Rank #3 (Hold).

Looking at valuation, Toll Brothers is presently trading at a Forward P/E ratio of 11.28. This indicates a premium in contrast to its industry's Forward P/E of 9.96.

We can additionally observe that TOL currently boasts a PEG ratio of 1.23. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Building Products - Home Builders industry was having an average PEG ratio of 0.75.

The Building Products - Home Builders industry is part of the Construction sector. This industry, currently bearing a Zacks Industry Rank of 129, finds itself in the bottom 49% echelons of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


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