15 Undervalued Momentum Stocks That Are Taking Off

9. Toll Brothers Inc. (NYSE:TOL)

Number of Hedge Fund Holders: 51

On February 19, UBS analyst John Lovallo maintained his optimistic outlook on Toll Brothers Inc. (NYSE:TOL), assigning a Buy rating and increasing the price target to $198 from $181. According to the TipRanks report, the analyst said, “Better housing days lie ahead.”

Separately, on February 17, Toll Brothers Inc. (NYSE:TOL) reported steady first-quarter 2026 results. While Home Sales revenue was up 0.8% year over year (YoY) to $1.85 billion, total reported revenues for the quarter grew 15.4% year over year to $2.15 billion, ahead of the consensus expectation of $1.86 billion. The topline growth was supported by $290.6 million in land sales and other revenue, as compared to $18.4 million in Q1 2025.

Adjusted home sales gross margin for the quarter came in at 26.5%, 40 basis points below last year’s quarter and 25 basis points above the company’s guidance. GAAP EPS came in at $2.19, up from $1.75 in the same quarter of the prior year, and ahead of the consensus of $2.12 (TradingView data).

For 2026, Toll Brothers maintained its guidance for deliveries of 10,300–10,700 units and an average delivered price per home of $970,000-$990,000.

A week before the results announcement, on February 10, Oppenheimer had reaffirmed its Outperform rating on Toll Brothers Inc. (NYSE:TOL) and raised its price target to $177 from $155. The firm acknowledged Toll Brothers’ stock outperformance versus the broader market and believes that better supply-demand conditions are supporting the performance, along with benefits from the political backdrop and market rotation. Oppenheimer had expected the company to report in-line EPS for Q1.

Toll Brothers Inc. (NYSE:TOL) designs, builds, markets, sells, and arranges financing for a range of detached and attached homes in luxury residential communities in the United States. It serves first-time, move-up, active-adult, and second-home buyers. The Company also operates its own architectural, engineering, mortgage, title, land development, smart home technology, landscape, and building components manufacturing businesses.