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Yahoo
12 hours ago
- Business
- Yahoo
Is Trending Stock Toll Brothers Inc. (TOL) a Buy Now?
Toll Brothers (TOL) has recently been on list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future. Over the past month, shares of this home builder have returned +1.4%, compared to the Zacks S&P 500 composite's +0.6% change. During this period, the Zacks Building Products - Home Builders industry, which Toll Brothers falls in, has lost 5.8%. The key question now is: What could be the stock's future direction? While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making. Here at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock. We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. Toll Brothers is expected to post earnings of $3.59 per share for the current quarter, representing a year-over-year change of -0.3%. Over the last 30 days, the Zacks Consensus Estimate has changed -12%. For the current fiscal year, the consensus earnings estimate of $13.95 points to a change of -7.1% from the prior year. Over the last 30 days, this estimate has changed +2.1%. For the next fiscal year, the consensus earnings estimate of $14.41 indicates a change of +3.3% from what Toll Brothers is expected to report a year ago. Over the past month, the estimate has changed -2.4%. With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Toll Brothers. The chart below shows the evolution of the company's forward 12-month consensus EPS estimate: Even though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial. In the case of Toll Brothers, the consensus sales estimate of $2.85 billion for the current quarter points to a year-over-year change of +4.6%. The $10.93 billion and $11.18 billion estimates for the current and next fiscal years indicate changes of +0.8% and +2.3%, respectively. Toll Brothers reported revenues of $2.74 billion in the last reported quarter, representing a year-over-year change of -3.5%. EPS of $3.5 for the same period compares with $3.38 a year ago. Compared to the Zacks Consensus Estimate of $2.5 billion, the reported revenues represent a surprise of +9.53%. The EPS surprise was +22.38%. Over the last four quarters, Toll Brothers surpassed consensus EPS estimates three times. The company topped consensus revenue estimates three times over this period. No investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance. While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price. As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued. Toll Brothers is graded A on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade. The facts discussed here and much other information on might help determine whether or not it's worthwhile paying attention to the market buzz about Toll Brothers. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Toll Brothers Inc. (TOL) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
4 days ago
- Business
- Yahoo
Lennar (LEN) Lags Q2 Earnings Estimates
Lennar (LEN) came out with quarterly earnings of $1.90 per share, missing the Zacks Consensus Estimate of $1.94 per share. This compares to earnings of $3.38 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -2.06%. A quarter ago, it was expected that this homebuilder would post earnings of $1.74 per share when it actually produced earnings of $2.14, delivering a surprise of 22.99%. Over the last four quarters, the company has surpassed consensus EPS estimates two times. Lennar , which belongs to the Zacks Building Products - Home Builders industry, posted revenues of $8.38 billion for the quarter ended May 2025, surpassing the Zacks Consensus Estimate by 1.63%. This compares to year-ago revenues of $8.77 billion. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Lennar shares have lost about 20.4% since the beginning of the year versus the S&P 500's gain of 1.6%. While Lennar has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Lennar: unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $2.78 on $9.63 billion in revenues for the coming quarter and $10.25 on $35.89 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Building Products - Home Builders is currently in the bottom 9% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, KB Home (KBH), is yet to report results for the quarter ended May 2025. The results are expected to be released on June 23. This homebuilder is expected to post quarterly earnings of $1.45 per share in its upcoming report, which represents a year-over-year change of -32.6%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. KB Home's revenues are expected to be $1.5 billion, down 12.6% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Lennar Corporation (LEN) : Free Stock Analysis Report KB Home (KBH) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
10-06-2025
- Business
- Yahoo
GFF Q1 Earnings Call: Tariff Mitigation and Asset-Light Model Shape Outlook
Multi-industry consumer and professional products manufacturer Griffon Corporation (NYSE:GFF) fell short of the market's revenue expectations in Q1 CY2025, with sales falling 9.1% year on year to $611.7 million. Its non-GAAP profit of $1.23 per share was 12.5% above analysts' consensus estimates. Is now the time to buy GFF? Find out in our full research report (it's free). Revenue: $611.7 million vs analyst estimates of $618.2 million (9.1% year-on-year decline, 1% miss) Adjusted EPS: $1.23 vs analyst estimates of $1.09 (12.5% beat) Operating Margin: 16.6%, in line with the same quarter last year Market Capitalization: $3.31 billion Griffon's first quarter results were shaped by a return to pre-pandemic seasonality in its Home and Building Products (HBP) segment and ongoing adjustments in Consumer and Professional Products (CPP). CEO Ron Kramer cited the normalization of garage door demand and the segment's ability to maintain EBITDA margins above 30% as evidence of HBP's resilience, emphasizing the impact of steady residential performance and product mix. Management pointed to the launch of new products like the VertiStack Avante garage door as a differentiator, while CPP's profitability improved due to the transition toward an asset-light model and global sourcing. CFO Brian Harris noted that CPP's increased EBITDA was driven by sourcing initiatives and stronger results in Australia, despite persistent softness in North America and the UK. Management acknowledged that volume declines were expected and largely attributed to cyclical trends in both segments. Looking ahead, management remains focused on mitigating the impact of U.S.-China tariffs, especially within the CPP segment. While maintaining full-year guidance, CEO Ron Kramer asserted that tariff exposure is manageable due to HBP's domestic manufacturing base and ongoing supply chain diversification efforts in CPP. He said, 'We expect CPP to mitigate the inflationary effects of trade policy and other headwinds during the remainder of the fiscal year through supplier negotiations, cost management, leveraging existing inventory and, when necessary, taking price actions.' CFO Brian Harris added that supply chain shifts away from China for lawn and garden tools are on track, with similar strategies planned for the fan business by year-end. Overall, management's outlook depends on balancing price realization, cost controls, and maintaining flexibility within a dynamic operating environment. Management identified HBP's stable domestic business and CPP's asset-light transition as key factors influencing results, while highlighting tariff risk management as a top priority for the remainder of the year. HBP segment seasonality returns: HBP revenue reflected a normalization to pre-pandemic seasonal cycles, with the garage door business seeing typical second-quarter softness after last year's weather-driven strength. Management emphasized that residential demand remained stable, supporting margins above 30% in the segment. Product innovation spotlight: The launch of the VertiStack Avante garage door, which eliminates overhead tracks for more space and light, was highlighted as a significant product milestone. Management expects continued innovation to drive competitive differentiation in both residential and commercial door markets. CPP asset-light model benefits: Shifting U.S. CPP operations to an asset-light, globally sourced structure increased flexibility and lowered costs. This transition was credited with improving year-over-year EBITDA in CPP, despite volume declines in North America and the UK, and was supported by organic and acquisition-driven growth in Australia. Tariff risk management: Management explained that while about one-third of CPP's revenue is exposed to China-related tariffs, HBP—which generates 85% of segment EBITDA—is largely insulated due to its domestic focus. CPP's exposure is being managed through supply chain diversification, supplier negotiations, inventory strategies, and selective price increases. Capital allocation priorities: The company repurchased $31 million of stock during the quarter and reaffirmed its commitment to shareholder returns through ongoing buybacks and dividends. Management underscored that these actions are supported by the resilient cash flow of the business and a balanced approach to debt reduction and reinvestment. Management's outlook for the year centers on navigating tariff impacts, optimizing the CPP supply chain, and leveraging product innovation to support margins and growth. Tariff mitigation strategies: Management believes the financial impact of U.S.-China tariffs can be offset by shifting sourcing out of China, negotiating with suppliers, and managing inventory. CEO Ron Kramer reiterated that 'multiple levers of management' are available to address any increased costs, and that CPP's asset-light model enables operational flexibility. Product and market resilience: HBP's domestic manufacturing and focus on mid-to-high-end garage doors are expected to sustain margins even if consumer sentiment softens. CFO Brian Harris said that demand through April remained healthy, and management expects continued resilience due to home renovation trends and new product introductions. CPP segment improvement targets: Management reaffirmed the long-term 15% EBITDA margin target for CPP, supported by further global supply chain diversification and cost actions. They noted that while North America and the UK remain challenging, the Australian market and recent acquisitions are expected to underpin future growth. In upcoming quarters, the StockStory team will watch for (1) execution on supply chain diversification away from China in the CPP segment, (2) margin stability in HBP as seasonal demand returns, and (3) the company's ability to offset tariff-related cost pressures through pricing and cost management. The trajectory of North American consumer demand and the pace of new product adoption will also be key signals for future results. Griffon currently trades at a forward P/E ratio of 11.7×. In the wake of earnings, is it a buy or sell? See for yourself in our full research report (it's free). Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
17-05-2025
- Business
- Yahoo
Builders FirstSource, Inc. (BLDR) is Attracting Investor Attention: Here is What You Should Know
Builders FirstSource (BLDR) is one of the stocks most watched by visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock. Over the past month, shares of this construction supply company have returned +0.9%, compared to the Zacks S&P 500 composite's +9.8% change. During this period, the Zacks Building Products - Retail industry, which Builders FirstSource falls in, has gained 1.6%. The key question now is: What could be the stock's future direction? While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making. Rather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings. We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. Builders FirstSource is expected to post earnings of $2.37 per share for the current quarter, representing a year-over-year change of -32.3%. Over the last 30 days, the Zacks Consensus Estimate has changed -21.2%. For the current fiscal year, the consensus earnings estimate of $8.53 points to a change of -26.2% from the prior year. Over the last 30 days, this estimate has changed -13.9%. For the next fiscal year, the consensus earnings estimate of $9.96 indicates a change of +16.7% from what Builders FirstSource is expected to report a year ago. Over the past month, the estimate has changed -13.3%. Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Builders FirstSource is rated Zacks Rank #4 (Sell). The chart below shows the evolution of the company's forward 12-month consensus EPS estimate: While earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth. In the case of Builders FirstSource, the consensus sales estimate of $4.29 billion for the current quarter points to a year-over-year change of -3.8%. The $16.34 billion and $17 billion estimates for the current and next fiscal years indicate changes of -0.4% and +4%, respectively. Builders FirstSource reported revenues of $3.66 billion in the last reported quarter, representing a year-over-year change of -6%. EPS of $1.51 for the same period compares with $2.65 a year ago. Compared to the Zacks Consensus Estimate of $3.69 billion, the reported revenues represent a surprise of -0.78%. The EPS surprise was +0.67%. Over the last four quarters, Builders FirstSource surpassed consensus EPS estimates three times. The company could not beat consensus revenue estimates in any of the last four quarters. No investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance. Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is. The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an An is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued. Builders FirstSource is graded B on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade. The facts discussed here and much other information on might help determine whether or not it's worthwhile paying attention to the market buzz about Builders FirstSource. However, its Zacks Rank #4 does suggest that it may underperform the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Builders FirstSource, Inc. (BLDR) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
National Post
13-05-2025
- Business
- National Post
Cultured Stone® Expands Cobblefield® Profile with Serene New Color, Salt Flat™
Article content HOUSTON — Westlake Royal Building Products ™ ('Westlake Royal'), a Westlake company (NYSE:WLK), announces the launch of Salt Flat ™, a new colorway from Cultured Stone ®. Available in the Cobblefield ® profile, Salt Flat's elegant, neutral palette makes it ideal for a variety of architectural applications. Article content Inspired by the expansive tranquility of vast desert landscapes, Salt Flat blends understated light grays and soft, warm whites with a subtle, shimmering mica overlay, creating a nuanced, versatile neutral that adds sophistication and elegance to any design. Its delicate yet dimensional blend of undertones imbues spaces with brightness and depth, effortlessly harmonizing with a wide range of other colors, textures and design elements. Article content 'Developed in response to customer demand, the introduction of the Salt Flat colorway marks an exciting evolution for the Cultured Stone brand,' said Steve Booz, vice president of marketing and product management at Westlake Royal Building Products. 'The new color is more than just a design element—it's an immersive aesthetic experience that reflects modern trends. By responding to the evolving needs of architects, designers and homeowners, we continue to deliver timely, innovative solutions with exceptional aesthetics and performance.' Article content Designed to emulate the architecture of rural 19th-century America, Cobblefield's tailored lines and chiseled-cut surface lend a distinctive sense of craftsmanship to a variety of classic and contemporary designs. Whether used in residential or commercial settings, its rugged refinement strikes the perfect balance between modern elegance and time-weathered tradition, perfect for both interior and exterior applications. When paired with the multilayered tones of Salt Flat, the profile takes on a fresh yet grounded aesthetic that elevates any environment. Article content Cultured Stone is a brand within the Westlake Royal Building Products portfolio of exterior and interior building products. For more information, visit Article content About Cultured Stone Article content Driven by a pioneering spirit, Cultured Stone introduced the world's first architectural stone veneer, making it possible to feature authentic hues and natural textures of stone and brick in any environment. Nearly 60 years later, Cultured Stone continues to lead the industry by creating the finest stone products for empowering the artist within and bringing incomparable designs to reality. For more information on Cultured Stone's catalog of products, visit Article content Westlake Royal Building Products USA Inc., a Westlake company (NYSE:WLK), is a leader throughout North America in the innovation, design, and production of a broad and diverse range of exterior and interior building products, including Siding and Accessories, Trim and Mouldings, Roofing, Stone, Windows and Outdoor Living. Westlake Royal Building Products manufactures high quality, low maintenance products to meet the specifications and needs of building professionals, homeowners, architects, engineers and distributors, while providing stunning curb appeal with an unmatched array of colors, styles, and accessories. Article content Article content Article content Article content Contacts Article content Media Contacts: Kelly Nguyen Planit KNguyen@ (609) 385-6701 Article content Article content
