Investors typically look at top line and backlog, which we'd expect to continue strong.
There are some issues that can act as headwinds to near-term earnings.
That said, we expect investors to look through near-term risks because there appears more to come for this housing cycle.
Toll Brothers is in the midst of struggling through some issues in the key markets of New York and California, which could drag earnings in the near term. Even with that, Toll Brothers is putting up very strong top-line and backlog numbers. If we get some stock weakness, we want to use it to buy because we think there is a lot of visibility ahead.
Here's New Home Sales ("NHS") versus Toll Brothers stock indexed to NHS.
See Full Report
Take a test drive of our premium Seeking Alpha service. Members have unique access to our wealth of experience working with multi-billion dollar hedge funds and institutions in PM, analyst and trader roles. Our market models and analysis can help you know the next move in stocks, S&P 500, gold, oil and bonds. But what we're most proud of is the interaction with our members that can help you harness your own strengths to become a great investor or trader. There is no holy grail in this business. Discover your own unique investing ability.
Portions of this article may have been issued in advance to premium subscribers. All investments have many risks and can lose principal in the short and long term. This article is for information purposes only. By reading this you agree, understand and accept that you take upon yourself all responsibility for all of your investment decisions and to do your own work and hold Elazar Advisors, LLC and their related parties harmless. Any trading strategy can lose money and any investor should understand the risks.
#in, $spy, ^GSPC, INDEXSP:.INX, #elazaradvisorsllc, CME Globex: ES Disclosure: These trades can lose you money and principal especially when using leverage BY USING THIS SITE YOU AGREE TO TAKE ALL RESPONSIBILITY FOR YOUR OUTCOMES AND LOSSES AND HOLD ELAZAR ADVISORS, LLC AND ITS RELATED PARTIES HARMLESS