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Toll Brothers, Inc. (TOL) Stock Analysis

Falling Knife setup

SellVALUE-TRAP 1/5Moderate Confidence

Consumer Cyclical · Residential Construction

Sell if holding. Momentum 1.3/10 is below the 5.0 floor at $132.34 — engine's falling-knife protection flags exit rather than catching a breakdown. Specifics: Negative momentum; Sector modifier (Consumer Cyclical): -1.5.

Toll Brothers designs, builds, and sells luxury residential homes across 24 states and DC, operating 446 selling communities with a fiscal 2025 backlog of $5.49 billion (4,647 homes). Revenue is generated from move-up, first-time luxury, active-adult, and second-home buyers;... Read more

$132.34+14.2% A.UpsideScore 5.7/10#1 of 16 Residential Construction
QualityF-score8 / 9FCF yield7.45%
IncomeYield0.81%(5y avg 0.99%)Payout7.67%sustainable
Stop $123.77Target $151.54(analyst − 10%)A.R:R 2.0:1
Analyst target$168.38+27.2%16 analysts
$151.54our TP
$132.34price
$168.38mean
$115
$198

Sell if holding. Momentum 1.3/10 is below the 5.0 floor at $132.34 — engine's falling-knife protection flags exit rather than catching a breakdown. Specifics: Negative momentum; Sector modifier (Consumer Cyclical): -1.5. Chart setup: Death cross, below all MAs, RSI 39, MACD bearish. Score 5.7/10, moderate confidence.

Passes 6/7 gates (favorable risk/reward ratio, clean insider activity, no SEC red flags, earnings proximity no date, semi cycle peak clear, materials cycle peak clear). Fails on weak momentum. Suitability: aggressive.

Recent Developments — Toll Brothers, Inc.

Generated 2026-05-20T21:06:21Z.

Thesis

Rewards
Strong earnings beat streak (3/4)
Attractive valuation
Margin of safety: 37%
Risks
Sector modifier (Consumer Cyclical): -1.5
Negative momentum

Key Metrics

P/E (TTM)9.4
P/E (Fwd)8.7
Mkt Cap$11.8B
EV/EBITDA7.1
Profit Mgn12.3%
ROE17.0%
Rev Growth15.4%
Beta1.39
Dividend0.81%
Rating analysts24

Quality Signals

Piotroski F8/9MoatNarrow

Options Flow

P/C0.63bullish
IV41%normal
Max Pain$60-54.7% vs spot

Concentration Risks(10-K Item 1A)

  • MEDIUMGeographicCalifornia
    10-K Item 1A: 'A significant portion of our revenues and income from operations is generated from California.'

Material Events(8-K, last 90d)

  • 2026-03-31Item 5.02MEDIUM
    Karl K. Mistry appointed CEO effective March 30, 2026 per previously announced succession plan, succeeding Douglas Yearley who became Executive Chairman. Mistry also joined the Board with term expiring at 2027 annual meeting.
    SEC filing →

Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. Full disclaimer

Rating Breakdown

1 floor-breaker

Price action weak — below key moving averages, no momentum carry. Needs a base before trend-continuation setups apply.static

Macd
0.0
Volume
0.0
Obv
1.0
Ma Position
2.2
Rsi
3.5
Volume distribution (falling OBV)Below 200-MA but MA still rising (+2.3%/30d) — pullback in uptrend, not confirmed weakness
GatesMomentum 1.3<4.5A.R:R 2.0 ≥ 1.5Insider activity: OKNo SEC red flagsEARNINGS PROXIMITY NO DATESEMI CYCLE PEAK CLEARMATERIALS CYCLE PEAK CLEARFalling KnifeSuitability: Aggressive
RSI
39 · Neutral
20D MA 50D MA 200D MADEATH CROSSSupport $123.14Resistance $149.99

Price Targets

$124
$152
A.Upside+14.5%
A.R:R2.0:1

Position Sizing

ConvictionNone
Suggested %0.5%
Max %1%
RegimeRisk-Off

Risk Alerts

! Momentum score 1.3/10 — below 4.5 minimum

Earnings

B
B
B
M
3/4 beats
Next Earnings2026-05-19 (nulld)

Verdict History

reverse chrono — latest first
Loading history...
Verdicts are recorded on every nightly pipeline run. Rows capture transitions (verdict flips, score deltas ≥0.3, entry/TP/SL changes). Rows with a ▶ can be expanded to see the change reason. Aggregate cohort performance is tracked in the recommendation ledger.
Frequently Asked Questions
Is TOL stock a buy right now?

Sell if holding. Momentum 1.3/10 is below the 5.0 floor at $132.34 — engine's falling-knife protection flags exit rather than catching a breakdown. Specifics: Negative momentum; Sector modifier (Consumer Cyclical): -1.5. Chart setup: Death cross, below all MAs, RSI 39, MACD bearish. Prior stop was $123.77. Score 5.7/10, moderate confidence.

What is the TOL stock price target?

Take-profit target: $151.54 (+14.2% upside). Prior stop was $123.77. Stop-loss: $123.77.

What are the risks of investing in TOL?

Sector modifier (Consumer Cyclical): -1.5; Negative momentum.

Is TOL overvalued or undervalued?

Toll Brothers, Inc. trades at a P/E of 9.4 (forward 8.7). TrendMatrix value score: 8.0/10. Verdict: Sell.

What do analysts say about TOL?

24 analysts cover TOL with a consensus score of 3.8/5. Average price target: $168.

What does Toll Brothers, Inc. do?Toll Brothers designs, builds, and sells luxury residential homes across 24 states and DC, operating 446 selling...

Toll Brothers designs, builds, and sells luxury residential homes across 24 states and DC, operating 446 selling communities with a fiscal 2025 backlog of $5.49 billion (4,647 homes). Revenue is generated from move-up, first-time luxury, active-adult, and second-home buyers; 11,292 homes delivered in fiscal 2025. California generates a significant and above-average-margin portion of revenues.

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