
Toll Brothers (TOL) Stock Forecast & Price Target
Toll Brothers (TOL) Analyst Ratings
Bulls say
Toll Brothers is poised for strong growth, with a forecasted 14% year-over-year increase in orders for the second half of 2025, driven by an expanding community count and robust sales pace. The company has demonstrated improved gross margin dynamics, reporting a gross margin of 27.25% for the second quarter, attributed to a favorable regional mix and lower incentives, which suggests resilience amidst market challenges. Furthermore, Toll Brothers' premium land portfolio positions it well to capitalize on significant home price appreciation, supporting a positive outlook for future profitability and margin expansion.
Bears say
Toll Brothers faces a challenging outlook due to elevated interest rates, high home prices, and stretched affordability, which could negatively impact housing demand, profit margins, and investment returns. The company's earnings projections for FY’25 and FY’26 have been slightly decreased, reflecting a weak first and second quarter, with potential land impairments stemming from significant declines in industry fundamentals. Additionally, there are considerable risks related to housing market slowdowns and weaker demand in high-end markets, further contributing to uncertainty in the company's financial performance.
This aggregate rating is based on analysts' research of Toll Brothers and is not a guaranteed prediction by Public.com or investment advice.
Toll Brothers (TOL) Analyst Forecast & Price Prediction
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