Toll Brothers update October 9, 2017

Toll Brothers is updated and rated (higher) Buy at $42.81.

This stock is up 38% in 2017 and is up 55% since it was rated (lower) Strong Buy on February 27, 2016. It was rated Strong Buy 13 months ago on September 11, 2016 and is up 46% since then. It was first added to this site back on June 5, 2011 rated Speculative Buy at $21.03 as a way to benefit from the expected recovery in U.S. house prices. It proved to be volatile in price and certainly has not always moved in the expected direction. The price volatility has provided opportunities to add to positions at attractive prices. Despite the recent price increase it is still rated (higher) Buy based on our expectation for an earnings per share rise of perhaps 25% in the next year. Given its history, the share price could suffer a pullback in the meantime. And certainly if the overall market pulls back, this one is not immune. But overall, it appears to remain a good investment at this price.