Why $TOL Went Up
Turnaround Essay
I had predicted Toll brothers would go up and it ended up being correct. One reason that led me to this conclusion was the fact that they have never missed any estimates in the company’s history. This is strong proof of their strong management and their business practices. Especially considering the fact that they are a construction company, this makes it much harder for them to constantly deliver strong results as they have to go through many more challenges. Another reason why I thought they would beat the estimates was how prepared they were for the economy. In their last report, the CEO mentioned how this housing bubble wouldn’t last forever and their strong long-term plans for the company. This made me realize every plan they make is realistic and they don’t just lie to themselves about the strong results and know that nothing great lasts forever. Even though they had much fewer customers than the last quarter, they still beat every estimate which made my prediction about their good business strategies come true.