TOL
Toll Brothers, Inc.
stock NYSE

The market is pricing a decreasing demand plus the fact that their margins are more slim than any competitor. This is in my opinion, a very intentional move to keep their scale running, keep their infrastructure and connections rock solid. Margin isn't everything if you can keep the volume up through tough times of high interest rates and oil prices. The fact is that no other homebuilder is building homes as quickly as they can. They are low debt, asset light, and are continuing to expand. That is the exact recipe for a company that will completely dominate in a home buyers regime. Opened a position last week after tossing between LEN, TOL, and NVR, though I think they are all good buys at this stage LEN offers the best value, it has been beaten down too hard.

The market is pricing a decreasing demand plus the fact that their margins are more slim than any competitor. This is in my opinion, a very intentional move to keep their scale running, keep their infrastructure and connections rock solid. Margin isn't everything if you can keep the volume up through tough times of high interest rates and oil prices. The fact is that no other homebuilder is building homes as quickly as they can. They are low debt, asset light, and are continuing to expand. That is the exact recipe for a company that will completely dominate in a home buyers regime. Opened a position last week after tossing between LEN, TOL, and NVR, though I think they are all good buys at this stage LEN offers the best value, it has been beaten down too hard.