In the latest trading session, Toll Brothers (TOL) closed at $109.36, marking a +0.78% move from the previous day. The stock exceeded the S&P 500, which registered a gain of 0.73% for the day. At the same time, the Dow lost 0.64%, and the tech-heavy Nasdaq gained 1.61%.

The home builder's stock has climbed by 15.18% in the past month, exceeding the Construction sector's gain of 13.93% and the S&P 500's gain of 9.07%.

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 May 20, 2025. The company is expected to report EPS of $2.86, down 15.38% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.5 billion, down 11.76% from the year-ago period.

For the full year, the Zacks Consensus Estimates project earnings of $13.74 per share and a revenue of $10.89 billion, demonstrating changes of -8.46% and +0.35%, respectively, from the preceding year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Toll Brothers. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.41% decrease. Toll Brothers currently has a Zacks Rank of #4 (Sell).

Looking at its valuation, Toll Brothers is holding a Forward P/E ratio of 7.9. For comparison, its industry has an average Forward P/E of 9.82, which means Toll Brothers is trading at a discount to the group.

Also, we should mention that TOL has a PEG ratio of 1.15. 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 had an average PEG ratio of 1.32 as trading concluded yesterday.

The Building Products - Home Builders industry is part of the Construction sector. This industry, currently bearing a Zacks Industry Rank of 235, finds itself in the bottom 5% echelons of all 250+ industries.

Story Continues

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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Toll Brothers Inc. (TOL):Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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