Dow Jones Industrial Average -18516.55 (UP) Week Ending 07/15/2016
There seems to be something afoot in the Real Estate part of the stock market. I had already discussed Tri-Pointe, (Symbol TPH) ,earlier this year which is doing very well and now I am taking a look at Toll Brothers which is the number 1 builder of new luxury houses in the USA.
Toll Brothers (Symbol TOL, $27.40) is a company with steadily increasing sales and earnings. It has a PEG Ratio of 0.68 and an ROE (Return on Equity) of 9%.
TOL has a current PE of 13.3 and a forward PE of 9.73 so looking very good as opposed to an overpriced market. The company did sales of $4.5 Billion last year. The one year EPS is up 37.2% and the 3-5 year EPS growth has been 34.3% as the real estate market slowly recovers.
2015 earning per share were $1.97 and 2016 is projecting at $2.58 cents per share. 2017 looking out is projecting at $2.97 per share.
I think we might want to talk about book value now. The company has a Price to Book ratio of 1.11 which is very low and a current Book value of $24.62 a share. Also the Price to sales is also 1.01 so this stock has not been awarded its due value.
The target price on the stock is $36.62 which would be a 33.64% gain from these prices. Government policy seems to be pointing to keeping interest down and the jumbo loans have come down recently, all are pointing towards a favorable real estate market.
I have already taken a small position in TOL and plan on adding to it at these prices or below as the market corrects a little. Of course, everyone just needs to have the open floor concept, and the double sinks with the Jacuzzi in the On-Suite- Master bathroom. (Not found in my house!). But alas , there are many people that have lots of money and they will buy Toll Brothers houses and make the stock price go up. The lest I can do is to financially benefit from their good fortune.
Happy house and stock hunting,
Freewilly
There seems to be something afoot in the Real Estate part of the stock market. I had already discussed Tri-Pointe, (Symbol TPH) ,earlier this year which is doing very well and now I am taking a look at Toll Brothers which is the number 1 builder of new luxury houses in the USA. Toll Brothers (Symbol TOL, $27.40) is a company with steadily increasing sales and earnings. It has a PEG Ratio of 0.68 and an ROE (Return on Equity) of 9%.
2015 earning per share were $1.97 and 2016 is projecting at $2.58 cents per share. 2017 looking out is projecting at $2.97 per share.
The target price on the stock is $36.62 which would be a 33.64% gain from these prices. Government policy seems to be pointing to keeping interest down and the jumbo loans have come down recently, all are pointing towards a favorable real estate market.
I have already taken a small position in TOL and plan on adding to it at these prices or below as the market corrects a little. Of course, everyone just needs to have the open floor concept, and the double sinks with the Jacuzzi in the On-Suite- Master bathroom. (Not found in my house!). But alas , there are many people that have lots of money and they will buy Toll Brothers houses and make the stock price go up. The lest I can do is to financially benefit from their good fortune.
Happy house and stock hunting,
Freewilly
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