TOL

Toll Brothers (TOL) has outperformed the S&P 500 by 5% over the past month, but the Zacks Rank assigns it a #3 Hold rating. While the company has beaten earnings and revenue estimates in recent quarters, earnings estimates for the current fiscal year have declined 5.1% year-over-year.

Revenue growth remains modest at -1.2% for the current year. The stock trades at a discount to peers with a B valuation grade, suggesting it may perform in line with the broader market in the near term.

Toll Brothers announced the opening of Phase 3 home sites in the Griffith Lakes master-planned community in Charlotte, North Carolina. The new phase includes the Cottage Collection with homes starting from the upper $400,000s and the Preserve Collection starting from the mid-$500,000s. The community features luxury single-family homes with resort-style amenities, lake access, and proximity to Uptown Charlotte.

Toll Brothers and Brookfield Residential announced a joint venture master-planned community called LakePointe in Covington, Washington, located 35 minutes from downtown Seattle. The community will feature contemporary single-family homes and townhomes ranging from 1,204 to 2,878 square feet, with site work underway and sales anticipated to begin in mid-2027. The opening of LakePointe Boulevard to Highway 18 will improve connectivity to major regional destinations.

Toll Brothers has attracted investor attention recently. The homebuilder's stock returned -1.3% over the past month, underperforming the S&P 500's +2.4% gain.

While earnings estimates show modest growth expectations for next fiscal year (+7.7%), current year earnings are expected to decline (-5.1%). The company maintains a Zacks Rank #3 (Hold) rating and trades at a valuation discount to peers, suggesting it may perform in line with the broader market in the near term.