The most recent trading session ended with Toll Brothers (TOL) standing at $93.62, reflecting a +0.95% shift from the previouse trading day's closing. This change lagged the S&P 500's 1.81% gain on the day. Elsewhere, the Dow saw an upswing of 1.56%, while the tech-heavy Nasdaq appreciated by 2.06%.

Heading into today, shares of the home builder had lost 9.98% over the past month, lagging the Construction sector's loss of 7.59% and the S&P 500's loss of 6.14% in that time.

Market participants will be closely following the financial results 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. Simultaneously, our latest consensus estimate expects the revenue to be $2.5 billion, showing a 11.76% drop compared to the year-ago quarter.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $13.80 per share and a revenue of $10.89 billion, representing changes of -8.06% and +0.35%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for Toll Brothers. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Toll Brothers currently has a Zacks Rank of #3 (Hold).

Looking at valuation, Toll Brothers is presently trading at a Forward P/E ratio of 6.72. This expresses a discount compared to the average Forward P/E of 7 of its industry.

We can also see that TOL currently has a PEG ratio of 0.98. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. By the end of yesterday's trading, the Building Products - Home Builders industry had an average PEG ratio of 0.86.

The Building Products - Home Builders industry is part of the Construction sector. Currently, this industry holds a Zacks Industry Rank of 213, positioning it in the bottom 15% of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.

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

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research