Toll Brothers: Expect Weak Earnings In The Next Few Quarters
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May Investing Ideas698 FollowersFollow5ShareSavePlay(8min)CommentsSummaryToll Brothers remains rated Hold due to persistent demand and margin headwinds despite recent stock resilience.Backlog deterioration, elevated incentives, and rising cancellations signal ongoing structural challenges for TOL's growth and profitability.Short-term stabilization is evident, with flat deposit activity and strong Northern region orders, but not enough to offset broader weakness.TOL's 10.5x forward PE appears rich given the negative FY2026 earnings growth outlook and unresolved demand pressures.MoMo Productions/DigitalVision via Getty Images Investment Overview I wrote about Toll Brothers (TOL) previously with a hold rating because the demand backdrop was clearly deteriorating. Since then, the stock price has held up reasonably well, but the underlying fundamentals have notThis article was written byMay Investing Ideas698 FollowersFollowI am an individual investor that is now fully focus on managing my own capital that I have saved up over the years. My investing background spreads across a wide spectrum as I believe there are merits to each approach, for instance: Fundamental investing [Bottoms-up etc.], Technical investing [historical charts analysis], and to some extend momentum investing [share price reaction post earnings etc.]. Over the years, I have used the positive aspects of each approach to hone my investing process. The reason to write on SeekingAlpha is to use this platform as a tracker for my investing ideas performance, and also to connect with like-minded investors that have the same investing interest.Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.