Toll Brothers (TOL) has been drawing attention as one of the top-searched stocks on Zacks.com. Over the past month, the shares of this home builder have seen a -1.2% return, in contrast with a +0.2% change in the Zacks S&P 500 composite. Simultaneously, the Zacks Building Products – Home Builders industry, which includes Toll Brothers, witnessed a 6.1% drop. Consequently, investors are speculating about the stock’s possible future course. As the overall market trends are monitored, the focus on Toll Brothers might suggest careful optimism despite the home builders industry’s decline. To make informed decisions, investors must carefully examine the stock’s performance’s underlying factors and set them against the broader market context.
Toll Brothers’ Anticipated Earnings for the Current Quarter
The earnings estimate revisions for the current quarter predict Toll Brothers to report earnings of $3.64 per share, signifying a -22.1% change from the same quarter last year. In the past 30 days, the Zacks Consensus Estimate shifted by +12%. This upward revision suggests growing optimism among analysts regarding the company’s financial performance in the approaching quarter. Nevertheless, investors must carefully examine the factors contributing to this change in estimates, as well as other market variables, to make informed decisions about Toll Brothers stock.
Consensus Earnings Estimate for Fiscal Year: An Upward Trend
The consensus earnings estimate of $11.91 for the present fiscal year implies a year-over-year change of +19.8%, with a +12.3% alteration over the last 30 days. For the subsequent fiscal year, the consensus earnings estimate of $12.08 reflects a +1.5% change from the anticipated report 12 months prior, and this estimate has seen a +15.7% movement in the past 30 days. This upward trend in earnings estimates suggests a positive outlook among analysts, indicating potential growth and increased profitability for the company in question. In light of these developments, investors should closely monitor these changes and consider the possible implications for their investment strategies.
Zacks Rank: A Reliable Predictor of Short-Term Price Performance
The Zacks Rank, our unique stock rating system, is a dependable predictor of a stock’s short-term price performance, as it effectively utilizes the strength of earnings estimate revisions. The recent adjustment in the consensus estimate, together with three other factors, has resulted in a Zacks Rank #1 (Strong Buy) for Toll Brothers. This means that investors can expect significant capital gains from the stock within the one-to-three-month time frame. Furthermore, the Zacks Rank considers the likelihood of earnings surprises, providing even more confidence in Toll Brothers’ potential outperformance in the near term.
Progression of Toll Brothers’ Forward 12-Month Consensus EPS Estimate
The following chart displays the progression of the company’s forward 12-month consensus EPS estimate:
12 Month EPS Revenue Growth Forecast The chart illustrates an upward trend in the company’s earnings per share (EPS) over the next 12 months, indicating positive growth and revenue forecasts. This data suggests that investors can anticipate higher profits and improved overall financial performance as the company continues expanding its operations and achieving milestones in the coming year.
Understanding Revenue Growth: A Key Element for Investment Decisions
Earnings growth is commonly considered the most crucial indicator of a company’s financial well-being. However, a company cannot achieve such growth if it is unable to increase its revenues. Consequently, understanding a company’s potential revenue growth is critical. Recognizing the factors that drive revenue generation, such as market demand, pricing strategies, and product diversification, allows investors to assess the strength of a business’s future earnings prospects. By analyzing these key elements, one can make well-informed decisions that align with their investment goals and risk tolerance.
Strong Growth Projection: Toll Brothers’ Consensus Sales Estimate
In the case of Toll Brothers, the consensus sales estimate of $2 billion for the current fiscal year signifies a year-over-year change of +22.1%. This impressive growth projection showcases the company’s strong market position and its ability to adapt to industry trends. Furthermore, this substantial increase in sales can be attributed to the strategic initiatives and consistent performance implemented by Toll Brothers’ management.
FAQs
How has Toll Brothers’ stock performed compared to the Zacks S&P 500 composite and the Zacks Building Products – Home Builders industry?
Over the past month, Toll Brothers’ shares have seen a -1.2% return, while the Zacks S&P 500 composite changed by +0.2%. During the same period, the Zacks Building Products – Home Builders industry, which includes Toll Brothers, witnessed a 6.1% drop.
What is the earnings estimate for Toll Brothers in the current quarter?
The earnings estimate for the current quarter predicts Toll Brothers to report earnings of $3.64 per share, signifying a -22.1% change from the same quarter last year.
What are the consensus earnings estimates for the current and next fiscal year?
The consensus earnings estimates are $11.91 for the current fiscal year, with a year-over-year change of +19.8%, and $12.08 for the next fiscal year, reflecting a +1.5% change from the anticipated report 12 months prior.
What is the Zacks Rank?
The Zacks Rank is a unique stock rating system that effectively utilizes the strength of earnings estimate revisions. It is a dependable predictor of a stock’s short-term price performance.
What is Toll Brothers’ Zacks Rank?
Toll Brothers has a Zacks Rank #1 (Strong Buy), which suggests significant capital gains for investors within the one-to-three-month timeframe and a high likelihood of earnings surprises.
How does the forward 12-month consensus EPS estimate look for Toll Brothers?
The forward 12-month consensus EPS estimate displays an upward trend for Toll Brothers, indicating positive growth and revenue forecasts for the next 12 months.
What is the consensus sales estimate for Toll Brothers for the current fiscal year?
The consensus sales estimate for Toll Brothers for the current fiscal year is $2 billion, signifying a year-over-year change of +22.1%.
First Reported on: zacks.com
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