The latest trading session saw Toll Brothers (TOL) ending at $125.21, denoting a +0.69% adjustment from its last day's close. This move outpaced the S&P 500's daily gain of 0.67%. On the other hand, the Dow registered a gain of 0.38%, and the technology-centric Nasdaq increased by 0.98%.

Shares of the home builder have appreciated by 0.66% over the course of the past month, underperforming the Construction sector's gain of 1.44% and the S&P 500's gain of 2.07%.

Market participants will be closely following the financial results of Toll Brothers in its upcoming release. The company plans to announce its earnings on February 18, 2025. In that report, analysts expect Toll Brothers to post earnings of $1.99 per share. This would mark a year-over-year decline of 11.56%. At the same time, our most recent consensus estimate is projecting a revenue of $1.9 billion, reflecting a 2.56% fall from the equivalent quarter last year.

For the full year, the Zacks Consensus Estimates project earnings of $14.15 per share and a revenue of $10.99 billion, demonstrating changes of -5.73% and +1.29%, respectively, from the preceding year.

Investors should also pay attention to any latest changes in analyst estimates for Toll Brothers. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.7% lower. Toll Brothers currently has a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Toll Brothers has a Forward P/E ratio of 8.79 right now. For comparison, its industry has an average Forward P/E of 8.09, which means Toll Brothers is trading at a premium to the group.

Investors should also note that TOL has a PEG ratio of 1.07 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Building Products - Home Builders stocks are, on average, holding a PEG ratio of 0.93 based on yesterday's closing prices.

The Building Products - Home Builders industry is part of the Construction sector. This group has a Zacks Industry Rank of 237, putting it in the bottom 6% of all 250+ industries.

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.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.

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 Report

To read this article on Zacks.com click here.

Zacks Investment Research