Toll Brothers Opens New Luxury Communities, Boosting Investor Confidence
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 04 2024
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Should l Buy TOL?
Source: Newsfilter
Toll Brothers Inc saw a price increase of 5.00%, reaching a 5-day high, as the broader market showed strength with the Nasdaq-100 up 0.73% and the S&P 500 up 0.55%.
This surge is attributed to the company's recent announcements of launching two new luxury home communities in Georgia and North Carolina, which are expected to attract high-end buyers and drive sales growth. The new communities feature spacious home designs and prime locations, enhancing their market appeal and customer satisfaction.
The successful launch of these communities is likely to bolster investor confidence in Toll Brothers' growth prospects, especially in a competitive luxury housing market, indicating a positive outlook for the company's future performance.
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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: 163.830
Low
110.00
Averages
150.00
High
181.00
Current: 163.830
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 Beat: Toll Brothers reported Q1 earnings that exceeded market expectations, showcasing the company's strong performance in the luxury housing market, which is likely to drive stock price appreciation.
- Strong Demand: Analysts noted robust demand for move-up and luxury homes, indicating a rebound in consumer confidence that could foster future sales growth.
- Guidance Reaffirmed: The company reiterated its FY26 guidance, reflecting confidence in future market conditions, which is expected to attract more investor interest.
- Optimistic Market Outlook: With economic recovery and shifts in consumer preferences, Toll Brothers' positioning in the luxury housing market will provide a competitive edge, further solidifying its market share.
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- Leadership Transition: Toll Brothers announced that Karl Mistry will take over as CEO on March 30, marking the third CEO transition in the company's history, which is expected to drive the company into a new phase of growth.
- Strong Financial Performance: The company delivered 1,899 homes in Q1, generating $1.85 billion in revenue, exceeding the midpoint of guidance by approximately $24 million, with earnings per share at $2.19, reflecting a 25% year-over-year increase and showcasing robust execution in the market.
- Contract Signing Activity: The quarter saw 2,303 net contracts signed for $2.4 billion, with unit numbers flat but a 3% revenue increase due to an average sales price rise to $1,033,000, indicating stable market demand.
- Future Outlook: The company projects Q2 deliveries of 2,400 to 2,500 homes and maintains a full-year target of 10,300 to 10,700 homes, demonstrating confidence in the market and a strategic plan for continued growth.
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- Earnings Beat: Toll Brothers reported Q1 earnings of $2.19 per share, exceeding the consensus estimate of $2.11, indicating strong performance in the current market environment, which may attract more investor interest.
- Stable Revenue: The company’s housing revenues reached $1.8 billion, in line with forecasts, although the average home price was lower than expected at $976,900, the number of homes closed exceeded expectations, reflecting robust market demand.
- Guidance Reaffirmed: Toll Brothers reiterated its fiscal 2026 guidance, which analysts believe will serve as a bullish talking point, demonstrating the company's confidence in future growth.
- Market Positioning Advantage: Despite a 0.41% decline in shares to $163.61, Toll Brothers trades at a premium to peers, justified by the company’s focus on move-up and luxury buyers, who have shown better demand trends in the market.
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- Housing Demand Trends: Early signs indicate that housing demand is slightly higher compared to last year, according to executives at Toll Brothers.
- Toll Brothers Insights: The home builder's executives shared their observations on the current market conditions during a recent statement.
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- Data Source: Market news and data provided by Benzinga APIs offer real-time information to investors, assisting them in making more informed investment decisions.
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