Here's Why Toll Brothers (TOL) Gained But Lagged the Market Today

Toll Brothers (TOL) closed the latest trading day at $136.68, indicating a +0.35% change from the previous session's end. This change lagged the S&P 500's 0.53% gain on the day. Meanwhile, the Dow gained 0.93%, and the Nasdaq, a tech-heavy index, added 0.22%.Heading into today, shares of the home builder had gained 6.51% over the past month, outpacing the Construction sector's gain of 4.6% and the S&P 500's gain of 2.69% in that time.Market participants will be closely following the financial results of Toll Brothers in its upcoming release. It is anticipated that the company will report an EPS of $1.99, marking a 11.56% fall compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $1.9 billion, indicating a 2.56% decline compared to the corresponding quarter of the prior year.For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $14.25 per share and a revenue of $10.99 billion, representing changes of -5.06% and +1.29%, respectively, from the prior year.Investors should also pay attention to any latest changes in analyst estimates for Toll Brothers. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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. Within the past 30 days, our consensus EPS projection remained stagnant. Currently, Toll Brothers is carrying a Zacks Rank of #3 (Hold).With respect to valuation, Toll Brothers is currently being traded at a Forward P/E ratio of 9.56. Its industry sports an average Forward P/E of 8.36, so one might conclude that Toll Brothers is trading at a premium comparatively.Meanwhile, TOL's PEG ratio is currently 1.04. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Building Products - Home Builders was holding an average PEG ratio of 0.85 at yesterday's closing price.The Building Products - Home Builders industry is part of the Construction sector. This industry, currently bearing a Zacks Industry Rank of 220, finds itself in the bottom 13% echelons of all 250+ industries.The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.1% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Toll Brothers Inc. (TOL): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks