
NYSE:TOL
This summary was created by AI, based on 8 opinions in the last 12 months.
The reviews on Toll Brothers Inc. (TOL) depict a company navigating a challenging environment characterized by rising interest rates, which typically dampen homebuilder performance. Recently, the company reported decent but not exceptional results, with concerns about a weak forecast in light of the ongoing economic pressures. Despite these challenges, some analysts have highlighted the potential for improvements as interest rates are expected to decline, fueled by upcoming changes in the Federal Reserve leadership. Recommendations have been made to adjust stop-loss positions strategically to lock in gains and mitigate risks, showing a cautious yet optimistic perspective among experts. Overall, while TOL has experienced some positive stock performance in recent months, the consensus remains that fundamental issues tied to high interest rates and building costs persist.
(Top Pick Feb 17/15, Down 29.60%) A very high quality builder with a lot of land holdings. Housing starts are at record levels. Data points support a continued recovery in housing. Last year it was not as fast as people had hoped. This one is quite interesting unless the US goes into recession, which he does not see.
One of the luxury builders in US housing. They have pricing power and are still coming off the 2008 problem and are getting volume increases. They have secured about 8 years’ inventory of land. Household formations are running at about 1 million a year, and historically they have run at about 50% higher.
US homebuilder. Services the luxury high end of the market. After a muted year in the US housing market in 2014, he expects there will be an acceleration in housing starts in 2015/2016, and they are well positioned to take advantage of that. Because it services the high end of the market, there is less price sensitivity from its customers. A lot of exposure to California, US South and attractive markets. Not cheap, but looking at 2016 numbers it is trading at a PE of about 15X, which historically is not expensive.
The root of success for homebuilders is new orders and prices, the rest of it is kind of noise. This company is doing well.