Connect with us

Hi, what are you looking for?

Investing

Toll Brothers stock outlook following its Q2 earnings

toll brothers stock outlook after q2 earnings

Toll Brothers Inc (NYSE: TOL) is already up 30% for the year but an RBC Capital analyst says the stock is still relatively inexpensive to own.

Toll Brothers stock has another 15% upside

On Thursday, Mike Dahl upgraded the luxury homebuilder to “outperform” and raised his price objective to $77 – up another 15% from here.

He’s bullish on the Pennsylvania-based firm primarily because he expects higher prices and continued uptick to remain a tailwind in the coming months.

TOL has seen demand continue to improve through May, above normal seasonal trends. Deposits and foot traffic remain encouraging despite the return of 7.0% rates.

The analyst likes Toll Brothers stock for resiliency of the company’s margin profile as well. Its attractive also because it’s a dividend stock that currently pays a yield of 1.23%.

Toll Brothers reported a strong second quarter

Toll Brothers recently reported market-beating results for its second financial quarter in which the management spent nearly $84 million to buy back 1.4 million shares of the company.

Also on Thursday, the National Association of Realtors (NAR) said pending home sales remained unchanged for the month in April. Still, RBC’s Mike Dahl wrote in his research note today:

We expect outsized growth through first quarter of 2024 given easy comps, while we also view Toll Brothers’ long land bank as providing a margin advantage.

More importantly, CEO Doug Yearley expects increased activity as rates start to decline which could further benefit the Toll Brother stocks.

The post Toll Brothers stock outlook following its Q2 earnings appeared first on Invezz.

You May Also Like

Financial News

McCarthy’s Speakership Hangs in the Balance as House Greenlights Stopgap Funding Bill: A Defining Moment Looms In a stunning turn of events, the future...

Financial News

Conservatives Call for GOP Candidates to Step Aside After Second Debate: A Call to Streamline the Republican Race In a surprising turn of events,...

Financial News

Poll Unveils GOP Primary Voters’ Resounding Verdict on Best Republican Debate Performance In the midst of a heated Republican primary race, the GOP primary...

Financial News

Jeffries’ Strategic Maneuver: Outsmarting McCarthy to Avert Shutdown Crisis