Toll Brothers (TOL) Falls More Steeply Than Broader Market: What Investors Need to Know

In the latest close session, Toll Brothers (TOL) was down 1.01% at $135.22. This move lagged the S&P 500's daily loss of 0.74%. Elsewhere, the Dow lost 0.63%, while the tech-heavy Nasdaq lost 0.76%. Coming into today, shares of the home builder had lost 1.8% in the past month. In that same time, the Construction sector lost 2.42%, while the S&P 500 gained 0.79%. Investors will be eagerly watching for the performance of Toll Brothers in its upcoming earnings disclosure. The company's upcoming EPS is projected at $2.03, signifying a 16.00% increase compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $1.85 billion, down 0.29% from the prior-year quarter. TOL's full-year Zacks Consensus Estimates are calling for earnings of $12.77 per share and revenue of $10.5 billion. These results would represent year-over-year changes of -5.34% and -4.22%, respectively. 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. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential. Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 8.44% lower within the past month. At present, Toll Brothers boasts a Zacks Rank of #5 (Strong Sell). In terms of valuation, Toll Brothers is presently being traded at a Forward P/E ratio of 10.7. For comparison, its industry has an average Forward P/E of 11.37, which means Toll Brothers is trading at a discount to the group. We can also see that TOL currently has a PEG ratio of 1.12. 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 average PEG ratio for the Building Products - Home Builders industry stood at 1.73 at the close of the market yesterday. The Building Products - Home Builders industry is part of the Construction sector. At present, this industry carries a Zacks Industry Rank of 227, placing it within the bottom 9% of over 250 industries. The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions. Zacks Naming Top 10 Stocks for 2026Want to be tipped off early to our 10 top picks for the entirety of 2026? History suggests their performance could be sensational.From 2012 (when our Director of Research Sheraz Mian assumed responsibility for the portfolio) through November, 2025, the Zacks Top 10 Stocks gained +2,530.8%, more than QUADRUPLING the S&P 500’s +570.3%.Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2026. Don’t miss your chance to get in on these stocks when they’re released on January 5. Be First to New Top 10 Stocks >>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 ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks