Toll Brothers, Inc. (TOL)

cleverdanman (78.07) Submitted: 9/21/06 3:22 AM : Start Price: $27.17 TOL Score: 3.97

Housing stocks are a leading indicator of the real estate industry. That means that what is likely to occur in the future has already occurred in the share prices of housing companies. For instance, high-quality home-builders have seen their share prices go down to microscopic P/E's over the past year, meaning that the housing industry is going to be bad for the next year or so. But with that already priced into the stocks, the inevitable housing market recovery will be anticipated in the housing stock prices before the recovery even begins - probably by late 2007. (I have no real-world financial interest in this company.)

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