In the latest trading session, Toll Brothers (TOL) closed at $92.13, marking a -1.91% move from the previous day. The stock's performance was ahead of the S&P 500's daily loss of 2.36%. Elsewhere, the Dow lost 2.48%, while the tech-heavy Nasdaq lost 2.55%.

Prior to today's trading, shares of the home builder had lost 11.52% over the past month. This has lagged the Construction sector's loss of 7.02% and the S&P 500's loss of 5.6% in that time.

The investment community will be closely monitoring the performance of Toll Brothers in its forthcoming earnings report. On that day, Toll Brothers is projected to report earnings of $2.86 per share, which would represent a year-over-year decline of 15.38%. In the meantime, our current consensus estimate forecasts the revenue to be $2.5 billion, indicating a 11.76% decline compared to the corresponding quarter of the prior year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $13.74 per share and revenue of $10.89 billion. These totals would mark changes of -8.46% and +0.35%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for Toll Brothers. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.41% lower. Toll Brothers currently has a Zacks Rank of #3 (Hold).

With respect to valuation, Toll Brothers is currently being traded at a Forward P/E ratio of 6.83. This valuation marks a discount compared to its industry's average Forward P/E of 7.43.

It's also important to note that TOL currently trades at a PEG ratio of 0.99. 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. As the market closed yesterday, the Building Products - Home Builders industry was having an average PEG ratio of 0.91.

The Building Products - Home Builders industry is part of the Construction sector. With its current Zacks Industry Rank of 209, this industry ranks in the bottom 16% of all industries, numbering over 250.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within 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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