Toll Brothers Has Upside After A Strong Q2

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Summary

  • Toll Brothers' Q2 results exceeded expectations, showcasing resilience due to its high-end buyer base and less sensitivity to elevated mortgage rates.
  • Backlog and conservative guidance provide strong visibility for near-term earnings, with EPS now expected between $13.90-$14.40 for the year.
  • Management's capital-light lot strategy and robust balance sheet support ongoing buybacks and dividends, enhancing shareholder returns.
  • With increased conviction in the business model and a $130 price target, I recommend buying shares after these solid results.

Toll Brothers sale offices in Silicon Valley

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Shares of Toll Brothers, Inc. (NYSE:TOL) have sold off considerably over the past five months, leaving them down about 20% over the past year. Elevated mortgage rates have weighed on housing market activity, reducing expectations for the homebuilders. However, as I have

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