Toll Brothers (TOL) Flagged As Strong On High Volume
Trade-Ideas LLC identified
(
) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Toll Brothers as such a stock due to the following factors:
- TOL has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $73.8 million.
- TOL has traded 1.8 million shares today.
- TOL is trading at 9.89 times the normal volume for the stock at this time of day.
- TOL is trading at a new high 5.17% above yesterday's close.
'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize. In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.
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More details on TOL:
Toll Brothers, Inc., together with its subsidiaries, designs, builds, markets, and arranges finance for detached and attached homes in luxury residential communities. The company operates through two segments, Traditional Home Building and City Living. TOL has a PE ratio of 14. Currently there are 6 analysts that rate Toll Brothers a buy, no analysts rate it a sell, and 7 rate it a hold.
The average volume for Toll Brothers has been 2.6 million shares per day over the past 30 days. Toll Brothers has a market cap of $4.6 billion and is part of the industrial goods sector and materials & construction industry. Shares are down 18.6% year-to-date as of the close of trading on Monday.
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Analysis:
rates Toll Brothers as a
. The company's strengths can be seen in multiple areas, such as its attractive valuation levels, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and a generally disappointing performance in the stock itself.
Highlights from the ratings report include:
- Net operating cash flow has increased to -$23.23 million or 29.72% when compared to the same quarter last year. Despite an increase in cash flow of 29.72%, TOLL BROTHERS INC is still growing at a significantly lower rate than the industry average of 104.40%.
- The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. In comparison to the other companies in the Household Durables industry and the overall market, TOLL BROTHERS INC's return on equity is significantly below that of the industry average and is below that of the S&P 500.
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed compared to the Household Durables industry average, but is greater than that of the S&P 500. The net income has decreased by 10.0% when compared to the same quarter one year ago, dropping from $81.33 million to $73.18 million.
- You can view the full Toll Brothers Ratings Report.
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