Toll Brothers stock saw its IBD SmartSelect Composite Rating rise to 98 Thursday, up from 94 the day before.
The new rating is a sign the stock is outpacing 98% of all stocks when it comes to the most important stock-picking criteria. The market's biggest winners often have a 95 or higher rating in the early stages of a new price run, so that's a good item to have on your checklist when looking for the best stocks to buy and watch.
Toll Brothers stock broke out earlier, but has fallen back below the prior 68.98 entry from a consolidation. If a stock you're tracking clears a buy point then declines 7% or more below the original entry price, it's considered a failed base. Wait for the stock to set up and breakout from a new chart pattern and buy point. Also understand that the latest pattern is a later-stage base, which makes it riskier to establish a new position or add shares to an existing one.
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Toll Brothers stock has a 97 EPS Rating, meaning its recent quarterly and longer-term annual earnings growth tops 97% of all stocks.
Its Accumulation/Distribution Rating of C shows a roughly equal amount of buying and selling by institutional investors over the last 13 weeks.
The homebuilder posted a 54% rise in earnings for Q2. Revenue growth climbed 10%, up from -1% in the prior quarter. That marks one quarter of accelerating revenue gains.
Toll Brothers stock earns the No. 5 rank among its peers in the Building-Residential/Commercial industry group. Dream Finders Homes is the top-ranked stock within the group.
