Toll Brothers Story

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TOL -- USA Stock  

USD 47.89  0.41  0.86%

Toll Brothers is scheduled to announce its earnings today. The next earnings report is expected on the 14th of December 2020. Because some millenniums are getting more into consumer cyclical space, we are going to summarize the feasibility of inclusion Toll Brothers into your portfolio. What exactly are Toll Brothers shareholders getting in September?
Published over a month ago
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Would you shadow Toll Brothers analysts?
On a scale of 0 to 100, Toll Brothers holds a performance score of 11. The entity has a beta of 0.1347, which indicates not very significant fluctuations relative to the market. Let's try to break down what Toll Brothers's beta means in this case. As returns on the market increase, Toll Brothers returns are expected to increase less than the market. However, during the bear market, the loss on holding Toll Brothers will be expected to be smaller as well. Although it is vital to follow Toll Brothers current price movements, it is good to be conservative about what you can do with the information regarding equity historical returns. The philosophy towards measuring future performance of any stock is to evaluate the business as a whole together with its past performance, including all available fundamental and technical indicators. We have found twenty-eight technical indicators for Toll Brothers, which you can use to evaluate the performance of the company. Please operates Toll Brothers maximum drawdown, as well as the relationship between the expected short fall and rate of daily change to make a quick decision on whether Toll Brothers existing price patterns will revert.
What is the right price you would pay to acquire a share of Toll Brothers? For most investors, it would be the price that gives them a wide margin of safety to have minimal downside risk. In other words, most investors are always looking for undervalued stocks. Even if the future performance is not entirely as expected, the loss of holding it is minimized, and the downside risk is negated. Please read more on our stock advisor page.

What is happening with Toll Brothers this year

Annual and quarterly reports issued by Toll Brothers are formal financial statements that are published yearly and quarterly and sent to Toll Brothers stockholders. The reports show and break down the current year's ongoing operations and discuss plans for the upcoming year. Annual reports have been a requirement from the Securities and Exchange Commission (SEC) for businesses owned by the public since 1934. Companies such as Toll Brothers often view their annual report as an effective marketing tool to disseminate their perspective on company future earnings or innovations. With this in mind, many companies devote large sums of money to making their reports attractive and informative. In such instances, the annual report becomes a forum through which a company can communicate to the general public any number of topics that may or may not be directly related to the actual data published in the reports.

How Toll Brothers utilizes its cash?

To perform a cash flow analysis of Toll Brothers, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Toll Brothers is receiving and how much cash it distributes out in a given period. The Toll Brothers cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. Toll Brothers Net Cash Flow from Operations is relatively stable at the moment as compared to the past year. The company's current value of Net Cash Flow from Operations is estimated at 424.99 Million

Breaking down Toll Brothers Indicators

Earning per share calculations of Toll Brothers is based on official Zacks consensus of 5 analysts regarding Toll Brothers' future annual earnings. Given the historical accuracy of 92.43%, the future earnings per share of the company is estimated to be 2.7733 with the lowest and highest values of 2.55 and 2.95, respectively. Please note that this consensus of annual earnings estimates for the firm is an estimate of EPS before non-recurring items and including employee stock options expenses.

Is Toll Brothers a risky opportunity?

Let's check the volatility. Toll Brothers is looking slightly risky at this time. Whether you invest your money or manage your clients' funds, remember that it is easy to forget that behind Toll Brothers (NYSE:TOL) stock is an actual business venture. So, do not let stock picking become an abstract concept by ignoring the elementary risk calculations. acquiring a share of a Toll Brothers stock makes you a part-owner of that company.

Toll Brothers Current Consensus

Here is the new trade recommendation based on an ongoing consensus estimate among financial analysis covering Toll Brothers. The Toll Brothers consensus assessment is calculated by taking the average estimates from all of the analysts covering Toll Brothers

Strong Buy
2
Buy
2
Hold
6
Sell
1
Strong Sell
2
Strong Buy215.38
Buy215.38
Hold646.15
Sell17.69
Strong Sell215.38

Over 3 percent hike for Toll Brothers. What does it mean for stakeholders?

New total risk alpha is at 0.33. Toll Brothers shows above-average downside volatility for the selected time horizon. We advise investors to inspect Toll Brothers further and ensure that all market timing and asset allocation strategies are consistent with the estimation of Toll Brothers future alpha.

Our Final Perspective on Toll Brothers

While few other entities under the residential construction industry are still a bit expensive, Toll Brothers may offer a potential longer-term growth to stakeholders. To sum up, as of the 25th of August 2020, we believe that at this point, Toll Brothers is very steady with below average probability of distress within the next 2 years. From a slightly different point of view, the entity appears to be overvalued. Our current 30 days Buy-Hold-Sell recommendation on the company is Strong Hold.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Ellen Johnson do not own shares of Toll Brothers. Please refer to our Terms of Use for any information regarding our disclosure principles.

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