As homebuilder stocks like Pulte Group (PHM), Lennar (LEN) and D.R. Horton (DHI) test support at key benchmarks, Toll Brothers (TOL) is also running into resistance after moving steadily above a recent breakout.
Althougth Toll Bros. has been pulling back, it has so far found support at its 10-day moving average and also earned an upgrade to its IBD SmartSelect Composite Rating, from 91 jump to 97.
The revised score means the Pennsylvania-based homebuilder currently tops 97% of all other stocks in terms of key performance metrics and technical strength. History shows the top market performers tend to have a 95 or higher score as they launch their major climbs.
Toll Bros. is currently extended beyond a proper buy zone after breaking out from a 33.58 entry in a flat base.
The stock has a 92 EPS Rating, which means its recent quarterly and longer-term annual earnings growth is outpacing 92% of all stocks.
Its Accumulation/Distribution Rating of B- shows moderate buying by institutional investors over the last 13 weeks.
The company reported 43% earnings-per-share growth for Q2. That means it's now posted two straight quarters of rising EPS growth. Top line growth climbed 22%, up from -1% in the prior report. That marks one quarter of rising revenue gains.
Toll Brothers holds the No. 5 rank among its peers in the Building-Residential/Commercial industry group. NVR (NVR) is the top-ranked stock within the group.
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