Toll Brothers (TOL) Declines on Waning Demand
Shares of the U.S. luxury home builder, Toll Brothers, slipped more that 5% on Tuesday after the company reported its first fall in quarterly orders in more than four years.
Corroborating the weak state of the U.S. housing market, the Q4 result of the company is the latest evidence of slowing housing demand, hit by rising interest rates and higher home prices.
After a pre-market fall of 4.2%, the shares further declined to 5.6% after the results indicated that demand would likely fall further in November.
Sales of new U.S. single-family homes plunged to a more than 2-1/2-year low in October, due to sharp declines across regions.
Toll Brothers, whose homes can cost upwards of $2 million, said orders (a key indicator of future revenue) dropped 13.3% to 1,715 units in the quarter ended Oct. 31, against the 6.5% rise expected by analysts.
Orders fell most in California, Toll’s biggest market by revenue. This was the hardest hit where orders in general declined by 39.4% to 226 units in the quarter.
Toll’s net income rose to $311 million, or $2.08 per share, in the quarter, beating analysts’ estimate of $1.83 per share, while revenue surged 21.1% to $2.46 billion against Wall Street’s expectation of $2.35 billion.
TOL in upward trend: 10-day moving average moved above 50-day moving average on June 05, 2026
The 10-day moving average for TOL crossed bullishly above the 50-day moving average on June 05, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In of 14 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
The RSI Oscillator points to a transition from a downward trend to an upward trend -- in cases where TOL's RSI Oscillator exited the oversold zone, of 22 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Momentum Indicator moved above the 0 level on June 11, 2026. You may want to consider a long position or call options on TOL as a result. In of 86 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for TOL just turned positive on May 26, 2026. Looking at past instances where TOL's MACD turned positive, the stock continued to rise in of 56 cases over the following month. The odds of a continued upward trend are .
TOL moved above its 50-day moving average on June 09, 2026 date and that indicates a change from a downward trend to an upward trend.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where TOL advanced for three days, in of 321 cases, the price rose further within the following month. The odds of a continued upward trend are .
Bearish Trend Analysis
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In of 67 cases where TOL's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are .
The 50-day moving average for TOL moved below the 200-day moving average on May 15, 2026. This could be a long-term bearish signal for the stock as the stock shifts to an downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where TOL declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
TOL broke above its upper Bollinger Band on June 11, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Aroon Indicator for TOL entered a downward trend on May 29, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 65, placing this stock slightly better than average.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. TOL’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.622) is normal, around the industry mean (1.964). P/E Ratio (11.178) is within average values for comparable stocks, (18.281). Projected Growth (PEG Ratio) (1.086) is also within normal values, averaging (3.288). Dividend Yield (0.007) settles around the average of (0.025) among similar stocks. P/S Ratio (1.295) is also within normal values, averaging (1.545).
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General Information
a designer of single family homes
Industry Homebuilding
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