Toll Brothers, Inc. (TOL)

Just got into TOL after reading about the VERY STELLAR DHI earnings. Homebuilders are super cheap here!!

Housing market imploding
Read this article to see how bad it is repeat of 2008 with no bailout !
“The U.S. housing market has gone cold”

“US New-Home Sales Fall More Than Forecast to Two-Year Low”
Reported today jul 26 !

Toll Brothers is a luxurious home builder/ developer. An average home in the country is 48+/- years old, and 10% of houses are 70+ years old.
Would people tear down and rebuild their houses? Probably some people would, in the bay area or exclusive enclaves of LA.
I would sell my old house below market value and move into a new TB's house or another newly constructed home.

With interest rates continuing to move higher and new home starts and sales continuing to fall, there is no hurry to buy Toll until the shares form some kind of a base level.

Housing is going to get crushed .

Reading about people grabbing multi- figures monthly as incomes in investment even in this crazy days in the market, any pointer any pointers on how to make substantial progress in earning? Would appreciate 🙏

Toll Brothers (NYSE:TOL) shares are perking up around 5% in Tuesday afterhours trading, as the homebuilder's second-quarter earnings topped average analyst estimates.
Looking ahead, the company is expecting deliveries of 11K-11.5K units in 2022, compared with 11.25K-12K in the previous forecast.
It also sees average delivered price per home of $890K-910K vs. $875K-895K in the prior view!!

Yup, the dominoes are falling....the overpriced chicken coops are going to be hard to sell.

Toll is a screaming buy! Investors are simply spooked by interest rates, not the reality of very strong buyer demand!

Toll Brothers down to $21.58 (today is March 16, 2020). Can it actually go below $20/share? Wow.

All the three indices are at all time high. that means 401k are loaded, savings have increased, there is money to upgrade. luxury goods are in demand. just look at RH performance. I don't see stop to this bull marker at list for the next 2-3 years, consumer spending is huge.

UBS analyst Nishu Sood initiates coverage on Toll Brothers (NYSE:TOL) with a Buy rating and announces Price Target of $62.

TOL has hit it completely out of the park on every metric including the guidance. Look for Much higher prices in the near future.

Toll brothers is best of breed of homebuilders. The free cash flow yield is decent at around 8%. I am confident Toll brothers will not drop more than 15% at these levels in a month, especially in a low interest, low inventory, high housing demand environment. I sold 20 $39 Jan 15th put contracts for $0.75. I will take delivery if assigned to me.

I understand the drop is due to the big increase in long term rates and rotation to other sectors. But even with rates 15 bps higher, mortgage rates are still cheap and Toll is building like crazy where I live. Demand in 55+ housing seems huge.

TOL near 52-week low during one of the strongest economies we've seen in decades.

What does this tell you?

The company earned $1.87 per share, which was ahead of the expected $1.54.