Can Toll Brothers (TOL) Build on Recent Gains After Earnings

What's Happening With TOL View more about TOL >

Homebuilder Toll Brothers (TOL) will report fiscal first-quarter numbers on February 26. Analysts forecast earnings of $0.63 per share and revenue of $1.29 billion. During the same period last year the company earned $0.83 per share and had revenue of $1.18 billion.

Technical Analysis

TOL was recently trading at $37.77 down $11.47 from its 12-month high and $9.09 above its 12-month low. InvestorsObserver’s Stock Score Report gives TOL a 50 long-term technical score and a 55 short-term technical score. The stock has recent support above $35 and recent resistance below $38. Of the 13 analysts who cover the stock 2 rate it Strong Buy, 1 rate it Buy, 9 rate it Hold, 0 rate it Sell, and 1 rate it Strong Sell, TOL gets a score of 48 from InvestorsObserver’s Stock Score Report.

Analysts' Thoughts

The entire housing sector showed weakness in 2018 stemming from concerns over rising interest rates. We have seen stability return to the sector after the Federal Reserve announced it plans to boost rates just twice in 2019, down from its previous estimate of three additional rate hikes. Interest rates have been on the rise in recent years, but they remain very low on an historic basis. TOL has posted big earnings surprises the last two quarters, and if the company is able to extend that streak the stock should continue to build on its recent gains. The stock has a very low valuation and is currently trading at less than 8 times earnings, so there is a lot of upside as long as the quarterly numbers are in-line or better than expected. Analysts have an average price target of $37.89 on the stock.

TOL
About Toll Brothers Inc.

Toll Brothers is the leading luxury homebuilder in the United States with an average sales price well above public competitors'. The company operates in 50 markets across 22 states and caters to move-up, active-adult, and second-homebuyers. Traditional homebuilding operations represents over 95% of the company's revenue. Toll Brothers also builds luxury for-sale and for-rent properties in urban centers, primarily on the East Coast. The company's headquarters is in Horsham, Pennsylvania.

  • Last Price:
    $35.79
  • Previous Close:
    $36.49
  • Change:
    $-0.70 (-1.92%)
  • Open:
    $37.22
  • Volume:
    3,045,715
  • Average Volume (100 Day):
    1,716,226
  • Market Capitalization:
    $5.1 B
  • Day's Range:
    $35.15 - $37.27
  • Dividend Yield:
    1.21%
  • 52-week Range:
    $40 - $28.68
  • P-E:
    7.40
  • EPS:
    $4.93
  • Earnings Date:
    8/20/19
  • Ex Dividend Date:
    7/11/19
  • Sector:
    Consumer Cyclical
  • Industry:
    Residential Construction
  • Analyst Average Recommendation:
    Hold

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