MENU

Can Toll Brothers (TOL) Stock Reach $175?

a designer of single family homes

Industry: #Homebuilding
TOL
Daily Signal:
Gain/Loss:
A.I.Advisor
published price charts
A.I.Advisor
Nov 02, 2026

Can Toll Brothers (TOL) Stock Reach $175?

Toll Brothers, Inc. (TOL), the nation's largest builder of luxury homes, has drawn renewed attention as its shares surged more than 5% in a single session to $153.35, pushing toward the upper end of a wide analyst target range. The question investors are asking is whether the stock can reach $175.

Key Takeaways

  • The central stock price target used here is $175, which is the arithmetic mean of the verified analyst targets that sit above the current price, rounded to a clean level.
  • The overall average of all valid analyst targets is roughly $167, less than 10% above the latest price, so the above-price subset is used per standard methodology.
  • At the Nov. 2, 2026 close of $153.35, reaching $175 implies roughly 14% upside.
  • The analyst range is wide: from about $118 (Barclays, Underweight) to $187 (UBS), with some aggregators citing a high near $195.
  • Supports include resilient luxury-home demand, 8%–10% annual community-count growth, a low-leverage balance sheet, and a raised $700 million buyback plan.
  • Key risks are elevated mortgage rates, a subdued order environment, and modest margin pressure on deliveries.
  • For more detail, explore Major News and Today's Price Move on TOL, plus its Forecast and Earnings pages.
  • Discover Trending AI Robots for AI-driven market scanning and trade ideas.

Analyst Price Targets and Consensus View

Roughly 16 current individual analyst price targets were reviewed, spanning approximately $118 to $187. The overall mean of all targets is about $167, only about 9% above the latest price and below the 10% threshold used for a meaningful target. As a result, the central target of $175 reflects the average of the 13 targets above the current share price (about $173, rounded to $175).

Views differ sharply. Bulls such as UBS ($187), Evercore ISI ($184), Wells Fargo ($185), and Melius Research ($179, initiated Buy) emphasize Toll's affluent customer base and community-expansion strategy. More cautious firms have trimmed targets: KBW cut to $164 from $170, Citi to $168 from $179, Goldman Sachs to $161 (Neutral), and RBC Capital to $148. Barclays stands out at $118 with an Underweight rating, reflecting a bearish view of housing fundamentals. The overall average rating remains a Buy.

Current Market Position and Path Toward the Target

At $153.35, the move to $175 requires about 14% upside, a modest-to-substantial gain. Toll Brothers trades at a trailing P/E (price-to-earnings) of roughly 12 and a forward P/E near 11.5, with trailing EPS (earnings per share) of about $12.40 on roughly $10.8 billion in trailing revenue.

Fiscal Q3 results showed delivery of 2,662 homes and $2.6 billion in home sales revenue, both above the midpoint of guidance, with an adjusted gross margin of 25.6% and diluted EPS of $2.97. Net signed contracts rose 5% year over year. Management reaffirmed full-year guidance, including an adjusted gross margin of 26.1%, roughly $10.5 billion in home sales revenue, and 8%–10% community-count growth. Reaching $175 would likely require a new 52-week high, since the current 52-week range tops out near $168.

What Could Support a Move Toward the Target

  • Resilient luxury demand, with affluent buyers less sensitive to affordability and roughly 25% paying all cash.
  • Expanding community count, projected at 480–490 selling communities by fiscal year-end, supporting future orders.
  • A strong balance sheet with low leverage and significant operating cash flow, backing dividends and a raised $700 million buyback.
  • A low-valuation setup: a forward P/E near 11.5 and a sizable backlog of about $6.2 billion provide earnings visibility.
  • Potential relief if mortgage rates ease or the FOMC (Federal Open Market Committee) cuts rates, which historically supports homebuilders.

What Could Prevent the Target From Being Reached

  • Elevated mortgage rates and low consumer confidence have kept the sales environment subdued, weighing on orders and pace.
  • Margin pressure on deliveries, as incentives and higher land and construction costs constrain profitability.
  • Concentration in luxury housing, which can lag if high-end demand cools or the broader economy slows.
  • Valuation compression risk if earnings expectations are revised lower, as reflected in several recent target cuts.
  • Technical resistance near the $168 area (the 52-week high) that must be cleared before $175 is in reach.

Technical Levels and Market Structure

The shares trade above both the 50-day moving average (near $138) and the 200-day moving average (near $144), a constructive long-term setup. The 52-week range spans roughly $123 to $168. Key support levels sit near $146 and the $138–$144 zone, while the $168–$170 area is the principal resistance level before the $175 target.

Time Horizon and What Investors Should Monitor

Analyst targets typically reflect a roughly 12-month research horizon, though firms differ in their assumptions. Investors should watch the next earnings report (estimated around Dec. 7, 2026), any updates to full-year guidance, community-openings and order trends, mortgage-rate movements, FOMC decisions, and further analyst target revisions, which have been actively trimmed in recent weeks.

AI Daily Buy/Sell Signals

Tickeron's AI Daily Buy/Sell Signals uses artificial intelligence to continuously monitor thousands of stocks and ETFs, generating Buy, Sell, or Hold signals based on changing market conditions, technical behavior, and AI-driven analysis. Traders can use these signals to discover new opportunities, monitor existing positions, and spot shifting trends more efficiently than manual scanning allows. Whether you are evaluating a homebuilder like Toll Brothers or the broader market, these signals offer a data-driven way to stay ahead of momentum changes.

Final Assessment

Can Toll Brothers reach $175? The $175 central target is the average of analyst targets above the current price, with the full range spanning roughly $118 to $187. From $153.35, that requires about 14% upside. Support comes from resilient luxury demand, community expansion, a strong balance sheet, and buybacks, while elevated mortgage rates, a subdued sales environment, and margin pressure are the principal obstacles. The wide analyst dispersion, including a bearish $118 target from Barclays, underscores genuine uncertainty. Reaching $175 would likely require clearing the $168 52-week high, followed by durable order and margin trends. No outcome is guaranteed.

Disclaimer

The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.

Disclaimers and Limitations

View a ticker or compare two or three
TOL
Daily Signal:
Gain/Loss:
Interact to see
Advertisement

TOL and Stocks

Correlation & Price change

A.I.dvisor indicates that over the last year, TOL has been closely correlated with PHM. These tickers have moved in lockstep 89% of the time. This A.I.-generated data suggests there is a high statistical probability that if TOL jumps, then PHM could also see price increases.

1D
1W
1M
1Q
6M
1Y
5Y
Ticker /
NAME
Correlation
To TOL
1D Price
Change %
TOL100%
+1.16%
PHM - TOL
89%
Closely correlated
+0.31%
DHI - TOL
86%
Closely correlated
-0.36%
MTH - TOL
84%
Closely correlated
-0.03%
KBH - TOL
81%
Closely correlated
+0.59%
GRBK - TOL
80%
Closely correlated
-2.67%
More

Groups containing TOL

Correlation & Price change

1D
1W
1M
1Q
6M
1Y
5Y
Ticker /
NAME
Correlation
To TOL
1D Price
Change %
TOL100%
+1.16%
TOL
(13 stocks)
78%
Closely correlated
+5.53%
Can Toll Brothers (TOL) Stock Reach $175?