10 Undervalued Cyclical Stocks to Invest In

​4. Toll Brothers, Inc. (NYSE:TOL)

Forward P/E Ratio: 10.54

Number of Hedge Fund Holders: 51

​Toll Brothers, Inc. (NYSE:TOL) is one of the Undervalued Cyclical Stocks to Invest In. On January 8, Tyler Batory from Oppenheimer reiterated a Buy rating on the stock with a $155 price target. A day earlier, on January 7, Citizen JPM initiated a Buy rating on the stock with a $175 price target.

​Citizen JPM noted that Toll Brothers, Inc. (NYSE:TOL) has been focusing on active adult and move-up customers. This has created a demand base for the company, which is less sensitive to interest rates in comparison to payment-driven buyers. The firm also highlighted that during the fiscal fourth quarter of 2025, 70% of the company’s closings came from active adult and move-up customers, providing the company with a resilient demand base.

​Moreover, according to the firm, the company is expected to expand its community count by roughly 9% in fiscal 2025 and projects around 8% to 10% growth in fiscal 2026.

​That said, earlier on December 17, Raymond James also reiterated a Buy rating on Toll Brothers, Inc. (NYSE:TOL) with a $160 price target. The firm highlighted that the company is stabilizing its net order growth and adjusted gross margins. Raymond James acknowledged a conservative outlook for 2026, mainly due to cost inflation and elevated incentives. However, the firm sees growth for the company in 2027.

​Toll Brothers, Inc. (NYSE:TOL) builds, markets, and finances residential and commercial properties across the United States.