Toll Brothers Inc
TOL
Delayed Nyse - 11/22 10:02:03 pm
48.07USD
+0.25%

In an accumulation phase

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David Meurisse
Contributor / Partner

Strategy published on : 09/12/2017 | 16:06

long trade
Target price hit

Entry price : 39.97$
Target : 43.9$
Stop-loss : 38.9$
Potential : 9.83%

There has been very little movement in Toll Brothers Inc's share price. This situation is bound to change. An exit on the upside out of the current trading range should go with a comeback in volatility. Therefore, the timing for new long positions seems good.
Summary

● The company has strong fundamentals. More than 70% of listed companies have a lower mix of growth, profitability, debt and visibility criteria.

● The company has solid fundamentals for a short-term investment strategy.


Strengths

● The company returns high margins, thereby supporting business profitability.

● With a P/E ratio at 12.37 for the current year and 11.12 for next year, earnings multiples are highly attractive compared with competitors.

● Over the last twelve months, the sales forecast has been frequently revised upwards.

● For the last few months, EPS revisions have remained quite promising. Analysts now anticipate higher profitability levels than before.

● Analysts have a positive opinion on this stock. Average consensus recommends overweighting or purchasing the stock.

● Within the weekly time frame the stock shows a bullish technical configuration above the support level at 33.56 USD


Weaknesses

● The share is close to its long-term resistance in weekly data. Therefore, the potential should be limited. However, a further bullish movement when crossing this resistance will be a positive signal.

● The stock is currently in contact with a medium-term resistance that must be gotten rid of so as to resume the upward trend.

● The group shows a rather high level of debt in proportion to its EBITDA.

● Financial statements have repeatedly disappointed market stakeholders. Most often, they were below expectations.

● The firm pays small or no dividend to shareholders. For that reason, it is not a yield company.

Zonebourse.com 2017
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