Analysts at StockStory recommend avoiding Toll Brothers following its first-quarter earnings, citing a declining backlog, projected revenue drop, and shrinking earnings per share. The homebuilder's backlog fell to $6.32 billion, averaging a 9.1% year-on-year decline over the past two years, signaling weakening demand. Wall Street forecasts a 2.9% revenue decline over the next 12 months, a sharp reversal from 7.5% annualized growth over the past five years. Earnings per share also contracted by 5.7% annually over the last two years, even as revenue grew 2.6%, indicating deteriorating profitability. While the stock trades at a reasonable 12.6 times forward earnings, the analysts see no compelling opportunity and suggest looking elsewhere.
Toll Brothers IncDeclining backlog and projected revenue drop signal weakening demand for homes
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