Homebuilding company Toll Brothers (NYSE:TOL) reported Q2 CY2025 results topping the market’s revenue expectations, with sales up 8% year on year to $2.95 billion. Its non-GAAP profit of $3.73 per share was 3.8% above analysts’ consensus estimates.
Homebuilder stocks are rallying Wednesday afternoon. The sector is being fueled by growing investor optimism that the Federal Reserve is poised to cut interest rates as soon as next month.
Peter Lynch's GARP strategy highlights Toll Brothers (TOL) as a strong candidate with steady growth, fair valuation, and solid financials. Learn why TOL fits Lynch's criteria for long-term investing.
Detroit, MI – Rocket Companies (NYSE: RKT), the parent company of Rocket Mortgage, has witnessed a significant surge in its stock price, fueled by robust second-quarter earnings, optimistic third-quarter guidance, and a surprising resurgence in the starter home segment of the housing market. This upward trajectory signals a potential turning point
Joshua Brown, CEO of Ritholtz Wealth Management, picked Rocket Companies as his final trade on CNBC's Halftime Report. Toll Brothers and Fastenal were also highlighted by other analysts.
A number of stocks jumped in the afternoon session after peer, D.R. Horton reported strong quarterly results. The positive sentiment lifted the entire homebuilding sector after D.R. Horton, delivered strong third-quarter results that surpassed analyst expectations. This news appeared to overshadow broader concerns about the housing market, which included reports of stubbornly high mortgage rates and a potential slowdown.
The low valuation multiples for value stocks provide a margin of safety that growth stocks rarely offer.
However, the challenge lies in determining whether these cheap assets are genuinely undervalued or simply on sale due to their potentially deteriorating business models.
