Latest news with #homebuilding
Yahoo
5 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
Reuters
8 hours ago
- Business
- Reuters
UK's Berkeley names Richard Stern as new CEO
June 20 (Reuters) - British homebuilder Berkeley Group (BKGH.L), opens new tab on Friday named current finance chief Richard Stern as its new CEO, succeeding Rob Perrins, who will take on the role of executive chair. Chairman Michael Dobson will step down in September after the group's annual general meeting, the company said. "At this time, the Board is very conscious of the complexity of today's operating environment in our industry, the role of housing in the Government's growth agenda and the importance of the current executive team to maintaining Berkeley's unique business model," Berkeley said in a statement. The company said it has proposed Perrins' appointment as chairman to lead the group's 10-year strategy, providing assurance to stakeholders of the continuity in leadership. As required by UK governance rules, Senior Independent Director Rachel Downey will consult with major shareholders in relation to this proposal, it said. The high-end homebuilder also reported an annual pre-tax profit slightly ahead of market expectations on Friday, helped by tight cost controls as high interest rates and affordability concerns weigh on demand in the sector. Pre-tax profit for the year ended April 30 came to 528.9 million pounds ($713.22 million), compared to analysts' estimate of 526.3 million pounds, according to LSEG data. ($1 = 0.7416 pounds)
Yahoo
13 hours ago
- Business
- Yahoo
LEN Q2 Deep Dive: Margin Pressures Mount as Lennar Prioritizes Volume and Technology Investments
Homebuilder Lennar (NYSE:LEN) announced better-than-expected revenue in Q2 CY2025, but sales fell by 4.4% year on year to $8.38 billion. Is now the time to buy LEN? Find out in our full research report (it's free). Revenue: $8.38 billion vs analyst estimates of $8.29 billion (4.4% year-on-year decline, 1.1% beat) Backlog: $6.48 billion at quarter end, down 21.2% year on year Market Capitalization: $27.15 billion Lennar's second quarter results were met with a negative market reaction, as the company delivered revenue ahead of Wall Street expectations but saw adjusted earnings per share fall short. Management highlighted that persistent affordability challenges in the housing market, driven by higher interest rates and cautious consumer sentiment, led to increased use of sales incentives and reduced margins. Executive Chairman Stuart Miller noted, 'We remain focused on driving volume and growth, matching production and sales pace using margin reduction to enable affordability.' Despite a drop in profitability, Lennar continued to prioritize keeping production steady to preserve long-term relationships and operational efficiencies. Looking ahead, Lennar's strategy centers on leveraging technology to drive cost savings, maintain sales pace, and eventually rebuild margins even as market conditions remain soft. Management expressed confidence that ongoing investments in initiatives such as the Lennar Machine (a digital marketing and pricing platform) and a new land management system will help streamline operations over time. CFO Diane Bessette emphasized, 'These initiatives have been and will continue to add SG&A as well as corporate G&A for some time to come as they represent a significant investment in our differentiated future.' Management acknowledged that while near-term headwinds persist, they believe the company is approaching a turning point where technology-driven efficiencies can support margin recovery. Management attributed the quarter's margin pressures to increased incentives needed for affordability, while emphasizing progress on operational efficiencies and technology adoption. Increased sales incentives: Lennar raised sales incentives to 13.3% during the quarter, primarily in the form of mortgage rate buydowns, to address affordability challenges and support sales volumes. Technology-driven sales and pricing: The company's Lennar Machine platform is now central to marketing and dynamic pricing, utilizing real-time data to optimize incentives and maintain sales pace across diverse markets. Core product rollout: Approximately one-third of new home starts now use Lennar's core product design, which management claims is reducing construction cycle times by nearly 20 days and lowering costs relative to non-core offerings. Land-light strategy advances: Lennar further reduced its supply of owned home sites, increasing reliance on controlled (but not owned) land, and continues to develop a digital land management system in partnership with Palantir to increase efficiency. Ongoing SG&A investment: Elevated selling, general, and administrative expenses reflect both lower leverage on falling revenues and higher spending on technology and marketing, which management believes will yield long-term efficiency benefits. Lennar expects ongoing softness in demand to weigh on margins, but is betting that technology and cost discipline will position the company for improved profitability longer term. Persistent affordability headwinds: Management expects higher-for-longer interest rates and cautious consumer sentiment to continue driving the need for incentives, putting near-term pressure on margins and average sales prices. Technology-enabled cost savings: Initiatives like the Lennar Machine and digital land management systems are designed to streamline marketing, sales, and land acquisition processes, which management believes will lower costs and support future margin recovery as adoption scales. Operational focus on inventory turns: The rollout of standardized core product designs and tighter inventory controls are expected to boost inventory turns and cash generation, with a stated long-term goal of reaching 3x inventory turns, up from the current 1.8x. In the quarters ahead, StockStory analysts will monitor (1) the pace of adoption and impact of Lennar's technology initiatives on cost structure, (2) the effectiveness of incentives in sustaining sales volumes without further eroding margins, and (3) improvements in inventory turns and cash generation as more divisions implement standardized core products. Execution on these priorities will be key to tracking Lennar's progress toward its margin recovery targets. Lennar currently trades at $103.98, down from $109.41 just before the earnings. At this price, is it a buy or sell? 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 5 Strong Momentum Stocks for this week. 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. 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
Bloomberg
21 hours ago
- Business
- Bloomberg
Canada Slashes Forecast for Making Housing More Affordable
Doubling the pace of homebuilding in Canada will only bring affordability back to levels seen right before the Covid-19 pandemic, according to a new government report that lowers expectations for the impact of construction on housing costs. The country must boost building to as much as 480,000 housing units a year by 2035 just to bring affordability back to where it was in 2019, the report from the Canada Mortgage & Housing Corp. said Thursday. The current rate of homebuilding is about 250,000 units, the agency said.
Yahoo
2 days ago
- Business
- Yahoo
Century Communities Sets Date for Second Quarter 2025 Earnings Release and Conference Call
GREENWOOD VILLAGE, Colo., June 18, 2025 /PRNewswire/ -- Century Communities, Inc. (NYSE: CCS), a leading national homebuilder, today announced that the Company will release its second quarter 2025 financial results after the market closes on Wednesday, July 23, 2025. A conference call will be held that same day at 5:00 p.m. Eastern time, 3:00 p.m. Mountain time, to review the Company's second quarter results, discuss recent events and conduct a question-and-answer session. Webcast:The conference call will be available in the Investors section of the Company's website at To listen to a live broadcast, go to the site at least 15 minutes prior to the scheduled start time in order to register, download and install any necessary audio software. To Participate in the Telephone Conference Call:Dial in at least 5 minutes prior to start timeDomestic: 1-800-549-8228International: 1-646-564-2877Conference ID: 57087 Conference Call Playback:Domestic: 1-888-660-6264International: 1-646-517-3975Conference ID: 57087The playback can be accessed through July 30, 2025. About Century Communities:Century Communities, Inc. (NYSE: CCS) is one of the nation's largest homebuilders, an industry leader in online home sales, and one of the highest-ranked homebuilders on Newsweek's list of America's Most Trustworthy Companies 2025—consecutively awarded for a third year—and Newsweek's list of the World's Most Trustworthy Companies 2024. Through its Century Communities and Century Complete brands, Century's mission is to build attractive, high-quality homes at affordable prices to provide its valued customers with A HOME FOR EVERY DREAM®. Century is engaged in all aspects of homebuilding — including the acquisition, entitlement and development of land, along with the construction, innovative marketing and sale of quality homes designed to appeal to a wide range of homebuyers. The Company operates in 17 states and over 45 markets across the U.S., and also offers mortgage, title, insurance brokerage, and escrow services in select markets through its Inspire Home Loans, Parkway Title, IHL Home Insurance Agency, and IHL Escrow subsidiaries. To learn more about Century Communities, please visit Contact Information:Tyler LangtonSenior Vice President, Investor Relations303-268-8345investorrelations@ View original content to download multimedia: SOURCE Century Communities, Inc. 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
