Latest news with #TOL
Yahoo
05-06-2025
- Business
- Yahoo
1 Safe-and-Steady Stock for Long-Term Investors and 2 to Steer Clear Of
A stock with low volatility can be reassuring, but it doesn't always mean strong long-term performance. Investors who prioritize stability may miss out on higher-reward opportunities elsewhere. Luckily for you, StockStory helps you navigate which companies are truly worth holding. That said, here is one low-volatility stock providing safe-and-steady growth and two stuck in limbo. Rolling One-Year Beta: 0.50 Expeditors (NYSE:EXPD) offers air and ocean freight as well as brokerage services. Why Do We Avoid EXPD? Annual sales declines of 14.1% for the past two years show its products and services struggled to connect with the market during this cycle Earnings per share have dipped by 11.3% annually over the past two years, which is concerning because stock prices follow EPS over the long term Eroding returns on capital suggest its historical profit centers are aging Expeditors's stock price of $111.57 implies a valuation ratio of 20.6x forward P/E. Read our free research report to see why you should think twice about including EXPD in your portfolio, it's free. Rolling One-Year Beta: 0.82 Started by two brothers who started by building and selling just one home in Pennsylvania, today Toll Brothers (NYSE:TOL) is a luxury homebuilder across the United States. Why Is TOL Not Exciting? Product roadmap and go-to-market strategy need to be reconsidered as its backlog has averaged 4.6% declines over the past two years Demand will likely be soft over the next 12 months as Wall Street's estimates imply tepid growth of 1.9% Free cash flow margin shrank by 15.8 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive Toll Brothers is trading at $108.21 per share, or 7.5x forward P/E. If you're considering TOL for your portfolio, see our FREE research report to learn more. Rolling One-Year Beta: 0.80 Originally started as an online auction platform, MercadoLibre (NASDAQ:MELI) is a one-stop e-commerce marketplace and fintech platform in Latin America. Why Will MELI Beat the Market? Unique Active Buyers have grown by 19.7% annually, allowing for more profitable cross-selling opportunities if it can build complementary products and features Strong engagement trends coupled with 16.9% annual growth in its average revenue per user demonstrate its platform's stickiness with die-hard customers Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends, and its recently improved profitability means it has even more resources to invest or distribute At $2,556 per share, MercadoLibre trades at 29.9x forward EV/EBITDA. Is now a good time to buy? Find out in our full research report, it's free. Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 9 Market-Beating Stocks. 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 Kadant (+351% five-year return). Find your next big winner with StockStory today for free. Sign in to access your portfolio
Yahoo
31-05-2025
- Business
- Yahoo
TOL's Earnings Estimate Are Headed Higher: Should You Buy or Wait?
Toll Brothers, Inc.'s TOL earnings estimate for fiscal 2025 has trended up 0.9% to $13.86 per share from $13.74 per share in the past 30 days. Analysts' sentiments are likely to have been bullish thanks to the company realizing benefits from its diversified luxury product offerings, the balanced portfolio of build-to-order and spec homes and its strategy of prioritizing sales base and margin. These trends, along with the company's 9% dividend hike and favorable long-term housing market demographics, are likely to have catalyzed the optimistic sentiments. (read more: Toll Brothers Q2 Earnings & Revenues Beat Estimates, Home Sales Up Y/Y) Image Source: Zacks Investment Research Given the ongoing risky trends in the housing market, this upward movement of this homebuilding company stands tall among other peer homebuilders, including Tri Pointe Homes, Inc. TPH, KB Home KBH and Lennar Corporation LEN. The earnings estimate trend for fiscal 2025 has moved down for Tri Pointe by 0.6% to $3.08 per share and KB Home by 4.2% to $7.05 in the past 30 days, and Lennar by 2.9% to $10.15 per share in the past 60 its second-quarter fiscal 2025 earnings release, TOL stock has inched up 0.5%, outperforming the Zacks Building Products - Home Builders industry, broader Construction sector and the S&P 500 index. Even though the share price performance of the company did not move up significantly, the positive trend compared with the declining trends of the industry, sector and the S&P 500 index is encouraging for investors to look into. Notably, in the past month, TOL has gained 3.8% against the industry's 2.2% decline Image Source: Zacks Investment Research Although the long-term housing market demographics are favorable and the company's in-house revenue and margin boosting strategies are boding well, the ongoing market uncertainties surrounding high mortgage rates, inflationary pressures and ambiguous tariff-related risks are hovering over Toll Brothers. Despite ongoing efforts to enhance its profitability, these lingering headwinds can negate the positive impacts of its business delve deeper into understanding the factors driving TOL's momentum as well as pressuring its growth. Toll Brothers mainly offers luxury homes to luxury communities in prosperous suburban areas with easy access to major cities. Thanks to these aspects, its tremendous brand, broad range of home price points and unique build-to-order model lend it a competitive advantage compared with other homebuilders. Moreover, it enjoys greater pricing power than other homebuilding companies, leading it to the strategy of widening price points to include more affordable luxury homes and increasing the supply of spec homes while growing market the ongoing affordability issues in the housing market, the company has been witnessing strong demand in the luxury home market thanks to its diversified luxury product offerings, the balanced portfolio of build-to-order and spec homes and its strategy of prioritizing sales base and margin. Furthermore, these strategies are supported by the types of customers the company caters to, mainly the move-up and empty-nester segments, who tend to be wealthier, have greater financial flexibility and a majority have equity in their existing homes. The company strategically balances between build-to-order and spec methods to ensure business profitability amid uncertain market conditions. A balanced approach helps Toll Brothers to respond effectively to changes in demand, especially in a fluctuating economic environment, while allowing it to meet diverse market needs. With this strategic operating model, the company is now primarily focusing on its return on equity (ROE), turning inventory and accurately balancing pace and price. Already mid-way through fiscal 2025, TOL is well-positioned for the remainder of fiscal 2025 and the upcoming year with its inventory of spec homes per community and the gross margin spread between its spec and build-to-order homes. Through a stable liquidity position, Toll Brothers aims to maintain shareholder value by returning cash to shareholders through regular share repurchases and dividend payments. This aspect can be substantiated by its recent dividend hike announcement during its second-quarter fiscal 2025 earnings release. On March 11, 2025, the company announced a 9% hike in its quarterly dividend payment to 25 cents per share (or $1 annually) from 23 during the first six months of fiscal 2025, the company bought back 1.832 million shares at an average price of $109.80 per share, totaling about $201.2 million. It now expects to repurchase $600 million worth of common stock, up from $500 million expected earlier in fiscal 2025. These moves highlight the company's stable financial position and commitment to reward shareholders. The company's trailing 12-month ROE reflects its growth potential and focus on maintaining shareholder value. As evidenced by the chart below, TOL's ROE is significantly better than the industry. This indicates that the company is efficiently using its shareholders' funds, along with generating profit with minimum capital usage. Image Source: Zacks Investment Research The company's current valuation is enticing for investors to look into it. TOL stock is currently trading at a discount compared with its industry peers on a forward 12-month price-to-earnings (P/E) ratio basis. The discounted valuation indicates an attractive option for investors looking for a suitable entry point. Image Source: Zacks Investment Research Persisting Affordability Concerns: The United States' housing market continues to face affordability concerns as homebuyers navigate between high mortgage rates and home ownership. Per Freddie Mac, the 30-year fixed mortgage rate for the week ending May 29, 2025, stands at 6.89%, with the 52-week average for the past year being at 6.7%. The mortgage rate settling around the high range between 6% and 7% is the new normal, which the homebuyers are still getting adjusted Uncertainties: The Fed putting a pause to interest rate cuts, which is currently at a benchmark between 4.25% and 4.5%, has raised concerns in the market. The Fed remains cautious due to the possible economic impacts from the full implementation of the new tariff regime, which is expected to uplift inflationary pressures in the tariffs are expected to elevate homebuilding costs and cause supply-chain inefficiencies, once fully implemented, deepening the risks engulfing the housing market. Although Toll Brothers does not expect to face any immediate supply-chain disruptions from tariffs as such, it continues to monitor developments closely to make necessary adjustments to address any challenges in the long term. As discussed above, Toll Brothers enjoys a competitive advantage in the homebuilding industry due to its specialization in diversified luxury home offerings to a customer base that is on the wealthier side. Approximately 24% of its buyers pay in all cash (up from its long-term average of approximately 20%), which is proving to be a huge support for the company in ensuring profitability in the current uncertain macro partially offsetting these tailwinds come the market's lingering sticky inflation and the ongoing tariff-related risk discussions, which are taking a toll on the company's by considering both sides of the coin, it is prudent for existing investors to retain this Zacks Rank #3 (Hold) company's shares for now, whereas new investors might want to wait for a more favorable entry can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. 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 KB Home (KBH) : Free Stock Analysis Report Lennar Corporation (LEN) : Free Stock Analysis Report Tri Pointe Homes Inc. (TPH) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
Barnama
23-05-2025
- Business
- Barnama
Selangor To Begin Enforcement Against 68 Illegal Factories In July
GENERAL SHAH ALAM, May 23 (Bernama) -- The Selangor government will carry out enforcement action against 68 illegal factories operating for over 20 years on state-owned land in the Klang and Petaling districts, said State Local Government and Tourism Committee chairman Datuk Ng Suee Lim. He said that the committee decided to conduct enforcement against operators of these illegal factories as they continue to encroach on state land, including road reserves, despite having been issued relocation orders. He said it is high time the state government took more decisive action to clear the area, as the operations of these factories also contribute to environmental pollution. "Of the total, 17 premises are classified as unauthorised factories operating in Klang, while the remainder are located in Shah Alam and Petaling, involving various types of businesses, including household glass manufacturing, furniture production, welding, workshops, and heavy machinery storage. "They have encroached on state land and set up factories without any Temporary Occupation Licence (TOL)," he told reporters after chairing today's meeting of the Selangor Unauthorised Factories standing committee, attended by representatives from local authorities here. Ng said the state government would not grant ownership status to the factories involved, adding that the operators must vacate the sites for the land to be rehabilitated. He said that investigations found that none of the factories involved were engaged in illegal waste processing, including electronic waste, and have never faced legal action for environmental pollution. Meanwhile, Ng said 90 notices under Section 7A of the National Land Code were issued to factory operators for the misuse of agricultural land, adding that approximately 500 more would be issued by July as part of a land regularisation effort with local authorities. "Although the number of unauthorised factories has shown a downward trend from over 6,000 to 4,170 so far, the state government will not compromise with those who encroach on state land," he added.
The Star
23-05-2025
- Business
- The Star
Selangor to begin enforcement against 68 illegal factories in July, says exco
SHAH ALAM: The Selangor government will carry out enforcement action against 68 illegal factories operating for over 20 years on state-owned land in the Klang and Petaling districts, says State Local Government and Tourism Committee chairman Datuk Ng Suee Lim. He said that the committee decided to conduct enforcement against operators of these illegal factories as they continue to encroach on state land, including road reserves, despite having been issued relocation orders. He said it is high time the state government took more decisive action to clear the area, as the operations of these factories also contribute to environmental pollution. "Of the total, 17 premises are classified as unauthorised factories operating in Klang, while the remainder are located in Shah Alam and Petaling, involving various types of businesses, including household glass manufacturing, furniture production, welding, workshops, and heavy machinery storage "They have encroached on state land and set up factories without any Temporary Occupation Licence (TOL)," he told reporters after chairing today's meeting of the Selangor Unauthorised Factories standing committee, attended by representatives from local authorities here. Ng said the state government would not grant ownership status to the factories involved, adding that the operators must vacate the sites for the land to be rehabilitated. He said that investigations found that none of the factories involved were engaged in illegal waste processing, including electronic waste, and have never faced legal action for environmental pollution. Meanwhile, Ng said 90 notices under Section 7A of the National Land Code were issued to factory operators for the misuse of agricultural land, adding that approximately 500 more would be issued by July as part of a land regularisation effort with local authorities. "Although the number of unauthorised factories has shown a downward trend from over 6,000 to 4,170 so far, the state government will not compromise with those who encroach on state land," he added. - Bernama
Yahoo
21-05-2025
- Business
- Yahoo
Toll Brothers Q2 Earnings & Revenues Beat Estimates, Home Sales Up Y/Y
Toll Brothers, Inc. TOL reported second-quarter fiscal 2025 (ended April 30) results, with adjusted earnings and total revenues topping the Zacks Consensus Estimate. On a year-over-year basis, the bottom line grew while the top line quarterly performance reflects soft contributions from the Land sales and other segment, partially offset by growth in home sales revenues. The housing market uncertainties persist and are expected to elevate if the new tax regime is fully implemented, mainly hitting the homebuilding cost structure. Nonetheless, the company is optimistic about its long-term growth trend, backed by the shortage of housing and the favorable TOL believes that with its broadly diversified luxury product offerings, balanced portfolio of build-to-order and spec homes, and its strategy of prioritizing sales price and margin over pace, will help it navigate through the choppy market of this leading luxury homebuilder rose 5.1% during yesterday's after-hours trading session following the earnings release. The investors' sentiments are likely to have been boosted by the 9% hike in the company's quarterly dividend to 25 cents per share ($1 annually). The company reported adjusted earnings per share (EPS) of $3.50, which surpassed the Zacks Consensus Estimate of $2.86 by 22.4% and grew 3.6% from the year-ago period. Toll Brothers Inc. price-consensus-eps-surprise-chart | Toll Brothers Inc. Quote Total revenues (including Home sales and Land sales and other) of $2.74 billion also topped the consensus mark of $2.5 billion by 9.5% but decreased 3.5% year over year. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.) The company's total home sales revenues were up 2% (above our projection of a 5% year-over-year decline) from the prior-year quarter to $2.71 billion. Homes delivered were up 10% (above our expectation of 0.1% growth year over year) from the year-ago quarter to 2,899 units. The average selling price (ASP) of homes delivered was $933,600 for the quarter, down 6.9% from the year-ago level of $1,002,300. Our model had expected ASP to be down 5.1% year over year to $951, contracts during the quarter were 2,650 units, down year over year from 3,041 units. The value of net signed contracts was $2.6 billion, reflecting a decline of 11.6% year over year. We had projected net-signed contracts to be up 3.8% in units and 4.4% in value for the the fiscal second-quarter end, Toll Brothers had a backlog of 6,063 homes, representing a year-over-year decrease of 14.5%. Potential revenues from backlog declined 7.3% year over year to $6.84 billion. The average price of homes in the backlog was $1,128,100, up from $1,040,200 a year cancellation rate (as a percentage of signed contracts) for the reported quarter was 6.2%, up from 5.7% in the prior-year adjusted home sales gross margin was 27.5%, which contracted 70 basis points (bps) for the quarter. Selling, general and administrative (SG&A) expenses, as a percentage of home sales revenues, were 9.5%, up 50 bps from the year-ago quarter. The company had cash and cash equivalents of $686.5 million at the fiscal second-quarter end compared with $1.3 billion at the fiscal 2024-end. The debt-to-capital ratio improved to 26.1% from 27% at the end of fiscal 2024. The net debt-to-capital ratio was 19.8% compared with 15.2% at the fiscal 2024-end. At the end of the fiscal second quarter, the company had $2.19 billion available under its $2.35 billion revolving credit facility, set to mature in February the first six months of fiscal 2025, the company bought back approximately 1.8 million shares for a total of $201.1 the end of the fiscal second quarter, TOL controlled about 78,600 lots, 58% of which were under control rather than owned outright, ensuring sufficient land for future expansion. Toll Brothers expects home deliveries of 2,800-3,000 units (compared with 2,814 units delivered in the prior-year quarter) at an average price of $965,000-$985,000 (compared with $968,200 in the year-ago quarter).Adjusted home sales gross margin is expected to be 27.25%, implying a decline from 28.8% in the year-ago period. SG&A expenses are estimated to be 9.2% of home sales revenues, indicating a rise from 9% in the year-ago period. The company expects the effective tax rate to be 26%. For fiscal 2025, home deliveries are anticipated to be in the range of 11,200-11,600 units. The estimated range reflects growth from the fiscal 2024 level of 10,813. It expects the period-end community count to be average price of delivered homes is expected to be $945,000-$965,000, indicating a decline from $976,900 in fiscal Brothers expects an adjusted home sales gross margin of 27.25%. This reflects a decline from 28.4% reported in fiscal expenses, as a percentage of home sales revenues, are now projected to be 9.4-9.5%, still an increase from 9.3% reported in fiscal 2024. The company expects the effective tax rate to be 25.5%. Toll Brothers currently carries a Zacks Rank #4 (Sell).You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks Homes Corporation MTH reported first-quarter 2025 results, wherein earnings missed the Zacks Consensus Estimate, but total closing revenues topped the same. Revenues beat the consensus estimate for the tenth consecutive Homes kicked off 2025 on solid footing, selling nearly 3,900 homes in the first quarter, even as the housing market faced headwinds. With the strategic focus on affordability and a strong pipeline of move-in-ready homes, Meritage believes it is well-positioned to grow market share in the current environment. Under the Homebuilding umbrella, home closing revenues of $1.34 billion declined 8% from the prior-year quarter's level due to lower ASP. Land closing revenues, however, grew 569% to $15.4 million from a year Inc. PHM has reported better-than-expected first-quarter 2024 results, wherein adjusted earnings and total revenues handily beat the Zacks Consensus Estimate. The company's performance continues to benefit from its diversified operations and strategic focus on balancing sales price and pace to maintain strong sale revenues decreased 1.8% year over year to $3.75 billion. Land sale and other revenues increased 41.2% to $52.6 million from a year ago. Home sales gross margin was down 210 basis points year over year to 27.5%. PulteGroup's backlog, which represents orders yet to be closed, was 11,335 units, down from 13,430 units a year Inc. NVR reported first-quarter 2025 results, with earnings and Homebuilding revenues missing the Zacks Consensus Estimate. Homebuilding revenues increased year over year, while the bottom line declined from the prior-year quarter's the quarter, the Homebuilding segment reported a modest increase in settlements and settlement prices, while new orders and average sales prices declined. NVR's backlog weakened, and gross margins compressed due to higher lot costs and affordability pressures. On a unit basis, backlog at the end of March 31, 2025, decreased 9% from the prior-year quarter's figure to 10,165 homes and fell 7% on a dollar basis to $4.84 billion. 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 PulteGroup, Inc. (PHM) : Free Stock Analysis Report Toll Brothers Inc. (TOL) : Free Stock Analysis Report Meritage Homes Corporation (MTH) : Free Stock Analysis Report NVR, Inc. (NVR) : 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
