Hovnanian's Poor Earnings Impacted All Housing Stocks Negatively
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 04 2025
0mins
Should l Buy TOL?
Source: Barron's
- Company Performance: Hovnanian Enterprises, a home builder based in New Jersey, reported a disappointing quarter that led to a significant drop in its stock price.
- Market Impact: The decline in Hovnanian's shares also negatively affected other housing stocks in the market.
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Analyst Views on TOL
Wall Street analysts forecast TOL stock price to fall
13 Analyst Rating
7 Buy
5 Hold
1 Sell
Moderate Buy
Current: 162.610
Low
110.00
Averages
150.00
High
181.00
Current: 162.610
Low
110.00
Averages
150.00
High
181.00
About TOL
Toll Brothers, Inc. is a builder of luxury homes. The Company builds new homes and communities in over 60 markets across the United States, serving first-time, move-up, active-adult, and second-home buyers. The Company also operates its own architectural, engineering, mortgage, title, land development, smart home technology, landscape, and building components manufacturing businesses. It designs, builds, markets, sells, and arranges financing for an array of luxury residential single-family detached, attached, master-planned, resort-style golf, and urban low-, mid-, and high-rise communities. It also develops and operates urban and suburban for-rent apartment and student housing communities (Apartment Living) primarily through joint ventures. These projects are located in various metropolitan areas throughout the country and have generally been operated or developed with partners under the brand names Toll Brothers Apartment Living and Toll Brothers Campus Living.
About the author

Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
- Earnings Announcement: Toll Brothers (TOL) is set to announce its Q1 2023 earnings on February 17 after market close, with consensus EPS estimated at $2.11 and revenue expected to be $1.86 billion, indicating stability in the current market environment.
- Strong Performance Record: Over the past two years, Toll Brothers has beaten EPS estimates 75% of the time and has achieved a 100% success rate in beating revenue estimates, showcasing the company's strong profitability and effective management of market expectations, which boosts investor confidence.
- Estimate Revision Trends: In the last three months, EPS estimates have seen five upward revisions and one downward revision, while revenue estimates have also experienced five upward revisions and one downward revision, reflecting a positive outlook for the company's future performance.
- Positive Market Reaction: Amid reports on the 'Trump Homes' plan, homebuilder stocks have surged, and as a leading player in the industry, Toll Brothers may benefit from improved overall market sentiment, further solidifying its market position.
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- New Community Evergrove: Toll Brothers has announced the opening of a new community named Evergrove in Richmond, Texas, expected to launch sales in fall 2026, marking a significant expansion in the luxury housing market.
- Home Designs and Pricing: Evergrove will feature five collections of modern home designs ranging from 1,880 to over 6,100 square feet, with prices starting from the mid-$400,000s to the mid-$900,000s, catering to diverse buyer needs.
- Quality Living Amenities: The community will include amenities such as a fitness center, pool, fishing pond, and parks, enhancing residents' quality of life, while its proximity to upscale shopping centers and top-rated schools increases its appeal.
- Design Studio Experience: The Toll Brothers Design Studio offers home shoppers the opportunity to personalize their homes with a wide selection and professional design consultant support, further enhancing customer satisfaction and brand loyalty.
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- Walmart Earnings Expectations: Analysts anticipate Walmart will report its fourth-quarter earnings on Thursday, with net sales expected to rise approximately 4% and operating income potentially increasing by 11%, further solidifying its status as a trillion-dollar company.
- Consumer Health Insights: Investors will closely monitor Walmart's commentary on consumer health and its 2026 financial guidance to assess future market trends and corporate strategy.
- FOMC Meeting Minutes Release: The minutes from the January FOMC meeting will be released on Wednesday, providing insights into policymakers' views on the path of interest rates, especially after holding rates steady at the start of the year, which has generated significant market interest.
- Personal Consumption Expenditures Data: On Friday, the Personal Consumption Expenditures (PCE) data will be released, which is the Fed's preferred inflation gauge, and the market will be keen to see if it confirms that inflation is steadily cooling or prompts the Fed to maintain a cautious stance.
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- Market Rebound: After a volatile week, the S&P 500 showed signs of recovery on Friday, although it still faced losses over the past five trading days, indicating a renewed investor confidence in the economic outlook.
- Inflation Data Impact: The cooler-than-expected January consumer price index contributed to a drop in bond yields and increased expectations for interest rate cuts later this year, further bolstering investor sentiment.
- Eli Lilly's Drug Inventory: Eli Lilly has built up $1.5 billion worth of pre-launch inventory for its GLP-1 obesity pill orforglipron, significantly up from $550 million last year, indicating strong demand expectations from the market.
- Upcoming Earnings Reports: Approximately 50 S&P 500 companies are set to report earnings next week, including Palo Alto Networks and Texas Roadhouse, with the market closely watching these reports for their implications on the broader economy.
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- Community Launch: Toll Brothers is launching its new luxury condominium community, Ironridge at Metro Heights, in Montebello, California, with a grand opening event on February 14, showcasing five new model homes and reinforcing its leadership in the luxury housing market.
- Diverse Floor Plans: The community offers six distinct floor plans ranging from 1,400 to 2,800 square feet, with prices starting in the upper $800,000s, catering to various buyer needs while providing a premium living experience with low-maintenance convenience.
- Extensive Amenities: Ironridge features a 10,000-square-foot recreation center with multiple pools, private cabanas, and a fitness center, along with plans for a future five-acre public park, enhancing residents' quality of life and social engagement opportunities.
- Personalized Design Services: The Toll Brothers Design Studio offers a one-stop shopping experience for homebuyers, allowing them to customize their homes according to personal preferences, significantly enhancing customer satisfaction and overall buying experience.
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- New Community Launch: Toll Brothers has unveiled two new model homes at its Incanta Lago community in Henderson, Nevada, featuring luxury residences ranging from 2,488 to 3,293 square feet, with prices starting in the mid-$900,000s, appealing to high-end homebuyers.
- Design and Personalization: The new model homes, Barona and Vento, showcase Toll Brothers' exceptional design, allowing buyers to choose from a wide array of personalization options at the Design Studio, enhancing the living experience and catering to diverse customer needs.
- Prime Location: Situated lakeside, the community offers resort-style amenities, championship golf courses, and water sports, enriching residents' social and active lifestyles, thus attracting buyers seeking high-quality living.
- Industry Recognition: Toll Brothers has been named the #1 Most Admired Home Builder in Fortune magazine's 2026 list of the World's Most Admired Companies®, marking the ninth consecutive year of this honor, further solidifying its leadership in the luxury home market.
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