Toll Brothers (TOL)’s EPS growth Analysis:
To gauge your chances of picking a winning stock, take a close look at its fundamentals, especially its earnings-per-share growth. Earnings per share are calculated by dividing a company’s net income by its number of shares outstanding. Stocks with high EPS growth rates compared with year-ago levels suggest a company has products or services in strong demand.
It’s even better if the EPS growth rate has been accelerating in recent quarters and years. Strong earnings growth is essential to a stock’s success and has the greatest impact on its future price performance. Stock with the highest EPSGR rises fastest in that year as compared to its competitors in the same industry. High growth rates in EPS are more reliable in the case of ‘matured companies’ which has experienced a complete economic cycle of expansion and contraction, through a bear market phase and a bull run.
Toll Brothers (TOL) predicted to achieve earnings per share (EPS) growth of 45.30% for this year while EPS growth expected to touch 11.19% for next year. The company reported EPS (ttm) of 3.75. Take a view on its long-term annual earnings per share (EPS) growth rate which is suggested by Analyst to reach at 20.05% for next 5 years and looking its past five year record, annual EPS growth rate was 2.00%.
Toll Brothers (TOL) ticked a yearly performance of -8.83% while year-to-date (YTD) performance stood at -24.30%. The stock price moved with change of -8.67% to its 50 Day low point and changed 8.60% comparing to its 50 Day high point. TOL stock is currently showing negative return of -1.30% throughout last week and witnessed increasing return of 6.22% in one month period. The stock price declined -6.91% in three months and decreased -17.10% for the last six months trading period.
The recent session unveiled a 8.60% upward lead over its 52-week stock price low and showed negative move of -31.06% over its 52-week high stock price. The stock price volatility remained at 2.53% in recent month and reaches at 2.49% for the week. The Average True Range (ATR) is also a measure of volatility is currently sitting at 1.
Analysis of Simple Moving Average:
The Simple Moving Average is arguably the most popular technical analysis tool used by traders. The Simple Moving Average (SMA) is often used to identify trend direction, but can be used to generate potential buy and sell signals.
When price is in an uptrend and subsequently, the moving average is in an uptrend, and the moving average has been tested by price and price has bounced off the moving average a few times (i.e. the moving average is serving as a support line), then a trader might buy on the next pullbacks back to the Simple Moving Average.
At times when price is in a downtrend and the moving average is in a downtrend as well, and price tests the SMA above and is rejected a few consecutive times (i.e. the moving average is serving as a resistance line), then a trader might sell on the next rally up to the Simple Moving Average.
Toll Brothers (TOL) stock price performed at a change of -0.45% from 20 day SMA and stands at a distance of -0.04% away from 50 day SMA. At present time the stock is moving -14.41% away to its 200-day moving average.
Short Ratio of stock is 3.31. Toll Brothers is a part of Industrial Goods sector and belongs to Residential Construction industry. Toll Brothers (TOL) finalized the Thursday at price of $36.35 after traded 2650650 shares. The average volume was noted at 2508.47K shares while its relative volume was seen at 1.06. Volume is an important technical analysis tool to learn and understand how to apply to price movements. Volume increases every time a buyer and seller transact their stock or futures contract. If a buyer buys one share of stock from a seller, then that one share is added to the total volume of that particular stock. Volume has two major premises:
When prices rise or fall, an increase in volume acts as confirmation that the rise or fall in price is real and that the price movement had strength. When prices rise or fall and there is a decrease in volume, then this might be interpreted as being a weak price move, because the price move had very little strength and interest from traders.
Toll Brothers (TOL) reported down change of -1.62% in last trading session. It is a positive indicator for investor portfolio value — when the price of a stock Investor owns goes up in value. On the other side it is not a negative indicator for Investor portfolio value — when the price of a stock Investor owns moves down in value.
In the liquidity ratio analysis; Total Debt/Equity ratio was 0.8. The return on assets ratio of the Company was 6.50% while its return on investment ratio was 4.70%. Price to sales ratio was 0.84 while Price to sales book ratio stands at 1.21. 81.90% shares of the company were owned by Institutional investors and Insider investors hold stake of 0.10%.
Keep Eyes On RSI Indicator:
The stock’s RSI amounts to 47.75. Wilder believed that when prices rose very rapidly and therefore momentum was high enough, that the underlying financial instrument/commodity would have to eventually be considered overbought and a selling opportunity was possibly at hand. Likewise, when prices dropped rapidly and therefore momentum was low enough, the financial instrument would at some point be considered oversold presenting a possible buying opportunity.
There are set number ranges within RSI that Wilder consider useful and noteworthy in this regard. According to Wilder, any number above 70 should be considered overbought and any number below 30 should be considered oversold. An RSI between 30 and 70 was to be considered neutral and an RSI around 50 signified no trend. – Some traders believe that Wilder’s overbought/oversold ranges are too wide and choose to alter those ranges. For example, someone might consider any number above 80 as overbought and anything below 20 as undersold. This is entirely at the trader’s discretion. The Beta factor, which is used riskiness of the security was 1.3.
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