Toll Brothers (TOL) closed the latest trading day at $105.30, indicating a -0.27% change from the previous session's end. This change lagged the S&P 500's daily gain of 0.38%. At the same time, the Dow lost 0.03%, and the tech-heavy Nasdaq gained 0.87%.

Shares of the home builder have depreciated by 2.58% over the course of the past month, outperforming the Construction sector's loss of 4.81% and the S&P 500's loss of 5.59%.

The investment community will be paying close attention to the earnings performance of Toll Brothers in its upcoming release. The company is predicted to post an EPS of $2.88, indicating a 14.79% decline compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $2.5 billion, reflecting a 11.76% fall from the equivalent quarter last year.

TOL's full-year Zacks Consensus Estimates are calling for earnings of $13.80 per share and revenue of $10.89 billion. These results would represent year-over-year changes of -8.06% and +0.35%, respectively.

Investors should also note any recent changes to analyst estimates for Toll Brothers. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.13% lower. Toll Brothers is holding a Zacks Rank of #3 (Hold) right now.

Looking at its valuation, Toll Brothers is holding a Forward P/E ratio of 7.65. This denotes a discount relative to the industry's average Forward P/E of 8.14.

We can additionally observe that TOL currently boasts a PEG ratio of 1.11. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Building Products - Home Builders was holding an average PEG ratio of 0.96 at yesterday's closing price.

The Building Products - Home Builders industry is part of the Construction sector. This industry currently has a Zacks Industry Rank of 226, which puts it in the bottom 10% of all 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.

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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