SA Quant Rankings of Leading Homebuilding Stocks Following Toll Brothers' Q4 Earnings Report
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 09 2025
0mins
Source: SeekingAlpha
Toll Brothers Earnings Report: Toll Brothers (TOL) stock fell after Q4 earnings missed Wall Street expectations, reporting an EPS of $4.58 compared to the estimated $4.89, largely due to delays in selling its Apartment Living business stake.
Top Homebuilding Stocks: Seeking Alpha’s Quant Ratings ranked Cavco Industries (CVCO) highest at 4.35, followed by Green Brick Partners (GRBK) at 4.19 and Champion Homes (SKY) at 3.99, all receiving "Buy" ratings.
Quant Rating System: The Quant system evaluates stocks based on performance metrics like valuation and growth, with ratings above 3.5 considered bullish and those below 2.5 viewed as bearish.
Additional Homebuilding Stocks: Other notable stocks include Installed Building Products (IBP) and Century Communities (CCS), both rated as "Hold" with scores of 3.29 and 3.24, respectively.
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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: 161.470
Low
110.00
Averages
150.00
High
181.00
Current: 161.470
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.
Toll Brothers Launches New Luxury Community in Waxhaw
- Community Opening: Toll Brothers has officially opened its luxury community, The Bluffs at Wesley Chapel, in Waxhaw, featuring only 12 spacious home sites priced from $1.1 million, catering to high-end market demand.
- Flexible Designs: The community offers five stunning home designs ranging from 3,905 to over 5,200 square feet, with up to 6 bedrooms and 5.5 bathrooms, tailored to meet the diverse lifestyle needs of modern families.
- Convenient Location: Ideally situated near downtown Waxhaw, Wesley Chapel Village Commons, and Waverly Shopping Center, the community provides easy access to major commuter routes to Charlotte, along with nearby parks and golf courses for recreational activities.
- One-Stop Shopping Experience: The Toll Brothers Design Studio allows home shoppers to personalize their dream homes with a wide array of selections and professional design consultants, enhancing customer satisfaction and competitive positioning in the luxury home market.
See More
Toll Brothers Opens New Community Model Homes
- 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.
See More
U.S. Housing Shortage and Investment Opportunities
- Housing Shortage Reality: According to Goldman Sachs, the U.S. faces a shortage of 3 to 4 million homes, significantly exceeding the normal annual construction of 1.5 million, leading to fierce competition among buyers and rising prices, thus providing sustained market opportunities for major homebuilders.
- Growth Potential of LGI Homes: LGI Homes is projected to achieve an 11% sales growth this year and 6% next year, reaching $2 billion in sales by 2027, showcasing its ability to stand out in a competitive market, particularly among first-time homebuyers.
- Market Leadership of D.R. Horton: As the largest homebuilder in the U.S., D.R. Horton reported $34.3 billion in sales last year, with expectations to grow sales to nearly $40 billion in the coming years, and its reasonable 10x P/E ratio offers a compelling value proposition for investors.
- Income Model of Invitation Homes: Invitation Homes owns and manages over 100,000 homes, with projected sales growth of only 3%, but its 4.34% dividend yield significantly surpasses the market average, attracting more income-focused investors.
See More
Toll Brothers Launches New Community in Texas
- New Community Launch: Toll Brothers announces the upcoming launch of Toll Brothers at Furst Ranch in Argyle, Texas, expected to open for sale in summer 2026, featuring single-family homes on 70- and 80-foot-wide lots to meet high-end market demand.
- Home Design and Customization: The community will offer flexible floor plans ranging from 3,089 to 5,967 square feet, incorporating innovative architectural designs and personalization options aimed at attracting luxury homebuyers.
- Quality Amenities: The community will include a 97-acre central park, a community center, and nature trails, enhancing residents' quality of life while increasing the community's appeal and competitiveness.
- Education and Transportation Convenience: Located within the Argyle Independent School District, residents will benefit from access to quality educational resources and proximity to major commuter routes, facilitating easy access to Dallas and nearby shopping and dining destinations.
See More
Toll Brothers Launches New Luxury Community in Raleigh Area
- Community Grand Opening: Toll Brothers announced the grand opening of its Chapel Oaks luxury community in Chapel Hill, North Carolina, on February 14, 2026, showcasing the highly anticipated Kendrick model home that blends modern design with refined amenities, attracting significant buyer interest.
- Home Design and Pricing: The community features single-family homes ranging from 3,905 to over 5,200 square feet, with 4 to 5 bedrooms and 3.5 to 5.5 bathrooms, starting at $1 million, catering to the high-end market demand.
- Prime Location: Chapel Oaks is situated less than three miles from downtown Chapel Hill, providing residents with convenient access to shopping, dining, and entertainment, while being close to the University of North Carolina, enhancing the community's appeal.
- Enhanced Customer Experience: The Toll Brothers Design Studio offers customers the opportunity to personalize their homes with a wide array of selections, supported by professional design consultants, further increasing customer satisfaction and engagement.
See More
Mixed Close for US Stocks as Retail Sales Stagnate
- Retail Sales Weakness: US December retail sales were unchanged month-over-month, falling short of the +0.4% expectation, indicating weakness in consumer spending that could lead to a downward revision in Q4 GDP, thereby impacting market confidence and economic growth outlook.
- Employment Cost Index Decline: The US Q4 employment cost index rose by +0.7% quarter-over-quarter, below the expected +0.8%, marking the smallest increase in 4.5 years, suggesting easing labor cost pressures that may influence the Fed's monetary policy decisions.
- Mixed Market Performance: The Dow Jones Industrial Average reached a new all-time high, closing up +0.10%, while the S&P 500 and Nasdaq 100 indices fell by -0.33% and -0.56%, respectively, reflecting divergent market sentiment and uncertainty.
- Focus on Upcoming Economic Data: The market will closely monitor upcoming economic data, including January nonfarm payrolls and unemployment rate, which are expected to significantly influence future monetary policy and market trends.
See More
Toll Brothers Launches New Luxury Community in Waxhaw
- Community Opening: Toll Brothers has officially opened its luxury community, The Bluffs at Wesley Chapel, in Waxhaw, featuring only 12 spacious home sites priced from $1.1 million, catering to high-end market demand.
- Flexible Designs: The community offers five stunning home designs ranging from 3,905 to over 5,200 square feet, with up to 6 bedrooms and 5.5 bathrooms, tailored to meet the diverse lifestyle needs of modern families.
- Convenient Location: Ideally situated near downtown Waxhaw, Wesley Chapel Village Commons, and Waverly Shopping Center, the community provides easy access to major commuter routes to Charlotte, along with nearby parks and golf courses for recreational activities.
- One-Stop Shopping Experience: The Toll Brothers Design Studio allows home shoppers to personalize their dream homes with a wide array of selections and professional design consultants, enhancing customer satisfaction and competitive positioning in the luxury home market.
See More
Toll Brothers Opens New Community Model Homes
- 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.
See More
U.S. Housing Shortage and Investment Opportunities
- Housing Shortage Reality: According to Goldman Sachs, the U.S. faces a shortage of 3 to 4 million homes, significantly exceeding the normal annual construction of 1.5 million, leading to fierce competition among buyers and rising prices, thus providing sustained market opportunities for major homebuilders.
- Growth Potential of LGI Homes: LGI Homes is projected to achieve an 11% sales growth this year and 6% next year, reaching $2 billion in sales by 2027, showcasing its ability to stand out in a competitive market, particularly among first-time homebuyers.
- Market Leadership of D.R. Horton: As the largest homebuilder in the U.S., D.R. Horton reported $34.3 billion in sales last year, with expectations to grow sales to nearly $40 billion in the coming years, and its reasonable 10x P/E ratio offers a compelling value proposition for investors.
- Income Model of Invitation Homes: Invitation Homes owns and manages over 100,000 homes, with projected sales growth of only 3%, but its 4.34% dividend yield significantly surpasses the market average, attracting more income-focused investors.
See More
Toll Brothers Launches New Community in Texas
- New Community Launch: Toll Brothers announces the upcoming launch of Toll Brothers at Furst Ranch in Argyle, Texas, expected to open for sale in summer 2026, featuring single-family homes on 70- and 80-foot-wide lots to meet high-end market demand.
- Home Design and Customization: The community will offer flexible floor plans ranging from 3,089 to 5,967 square feet, incorporating innovative architectural designs and personalization options aimed at attracting luxury homebuyers.
- Quality Amenities: The community will include a 97-acre central park, a community center, and nature trails, enhancing residents' quality of life while increasing the community's appeal and competitiveness.
- Education and Transportation Convenience: Located within the Argyle Independent School District, residents will benefit from access to quality educational resources and proximity to major commuter routes, facilitating easy access to Dallas and nearby shopping and dining destinations.
See More
Toll Brothers Launches New Luxury Community in Raleigh Area
- Community Grand Opening: Toll Brothers announced the grand opening of its Chapel Oaks luxury community in Chapel Hill, North Carolina, on February 14, 2026, showcasing the highly anticipated Kendrick model home that blends modern design with refined amenities, attracting significant buyer interest.
- Home Design and Pricing: The community features single-family homes ranging from 3,905 to over 5,200 square feet, with 4 to 5 bedrooms and 3.5 to 5.5 bathrooms, starting at $1 million, catering to the high-end market demand.
- Prime Location: Chapel Oaks is situated less than three miles from downtown Chapel Hill, providing residents with convenient access to shopping, dining, and entertainment, while being close to the University of North Carolina, enhancing the community's appeal.
- Enhanced Customer Experience: The Toll Brothers Design Studio offers customers the opportunity to personalize their homes with a wide array of selections, supported by professional design consultants, further increasing customer satisfaction and engagement.
See More
Mixed Close for US Stocks as Retail Sales Stagnate
- Retail Sales Weakness: US December retail sales were unchanged month-over-month, falling short of the +0.4% expectation, indicating weakness in consumer spending that could lead to a downward revision in Q4 GDP, thereby impacting market confidence and economic growth outlook.
- Employment Cost Index Decline: The US Q4 employment cost index rose by +0.7% quarter-over-quarter, below the expected +0.8%, marking the smallest increase in 4.5 years, suggesting easing labor cost pressures that may influence the Fed's monetary policy decisions.
- Mixed Market Performance: The Dow Jones Industrial Average reached a new all-time high, closing up +0.10%, while the S&P 500 and Nasdaq 100 indices fell by -0.33% and -0.56%, respectively, reflecting divergent market sentiment and uncertainty.
- Focus on Upcoming Economic Data: The market will closely monitor upcoming economic data, including January nonfarm payrolls and unemployment rate, which are expected to significantly influence future monetary policy and market trends.
See More
