
Toll Brothers (TOL) Stock Forecast & Price Target
Toll Brothers (TOL) Analyst Ratings
Bulls say
Toll Brothers, a leading luxury homebuilder in the U.S., has experienced increased foot and web traffic at the start of F4Q25, indicating positive consumer interest during a typically slower season. Despite a forecasted growth at the lower end of the 7% to 10% range for FY26 due to varying demand conditions, the company reported an elevated conversion rate from deposit to order at approximately 80%, significantly surpassing the historical average of 60%. This strong conversion metric, combined with strategic shifts towards more affordable luxury offerings and speculative homes, reinforces a positive outlook for Toll Brothers's financial performance.
Bears say
Toll Brothers has revised down its delivery expectations to 11,200 units, indicating potential challenges in maintaining sales momentum in a competitive luxury housing market. Despite keeping its average delivered price per home unchanged at approximately $950,000 to $960,000, the unchanged adjusted home sales gross margin of 27.25% raises concerns about pricing power amid potentially softer demand. Moreover, the persistent SG&A expenses as a percentage of home sales revenues, remaining at 9.4% to 9.5%, suggest that operational costs are not improving despite stagnant sales metrics, further emphasizing headwinds facing the company.
This aggregate rating is based on analysts' research of Toll Brothers and is not a guaranteed prediction by Public.com or investment advice.
Toll Brothers (TOL) Analyst Forecast & Price Prediction
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