Why Toll Brothers Stock Rocketed 34% Higher in May
Shares of homebuilder Toll Brothers (NYSE: TOL) rose a dramatic 34% in May according to data from S&P Global Market Intelligence. Although the shares were still lower by 18% through the first five months of 2020, compared to a loss of about 5% for the S&P 500 Index, they are well off the lows they reached in March. At that point, the stock had lost more than half of its value as investors feared COVID-19 would lead to massive changes in home buying trends. When that didn't come to pass, investors quickly got a lot more positive about Toll Brothers' stock.
The interesting thing here is that Toll Brothers doesn't report earnings on a calendar year basis. Its fiscal year ends in October, which means its fiscal second quarter includes April. April was basically the first month to feel the full brunt of the government's effort to contain the spread of the coronavirus by forcing non-essential businesses to shut and asking people to practice social distancing. So, when Toll Brothers reported earnings in May, the results provided a deeper look at just how bad things had gotten.
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Source Fool.com
