What Makes Toll Brothers (TOL) an Investment Bet?

Soumya Eswaran

Thu, May 15, 2025, 5:19 AM 3 min read

Baron Funds, an concern absorption company, released its “Baron Real Estate Fund” archetypal 4th 2025 capitalist letter. A transcript of the missive tin beryllium downloaded here. In Q1 2025, stocks were sold owed to economical maturation slowdown, inflation, and policymaking issues, including Baron Real Estate Fund®, without considering value. The money declined 6.69% (Institutional Shares) successful the 4th compared to a 3.11% diminution for the MSCI USA IMI Extended Real Estate Index (the MSCI Real Estate Index) and a 0.76% summation for the MSCI US REIT Index (the REIT Index). In addition, delight cheque the fund’s apical 5 holdings to cognize its champion picks successful 2025.

In its first-quarter 2025 capitalist letter, Baron Real Estate Fund highlighted stocks specified arsenic Toll Brothers, Inc. (NYSE:TOL). Toll Brothers, Inc. (NYSE:TOL) is simply a US-based location builder that designs, builds, markets, sells, and arranges financing for a scope of detached and attached homes. The one-month instrumentality of Toll Brothers, Inc. (NYSE:TOL) was 11.87%, and its shares mislaid 19.87% of their worth implicit the past 52 weeks. On May 14, 2025, Toll Brothers, Inc. (NYSE:TOL) banal closed astatine $105.07 per stock with a marketplace capitalization of $10.448 billion.

Baron Real Estate Fund stated the pursuing regarding Toll Brothers, Inc. (NYSE:TOL) successful its Q1 2025 capitalist letter:

"Toll Brothers, Inc. (NYSE:TOL) is simply a starring luxury homebuilder successful the U.S. with an exceptional absorption squad and a large, invaluable owned onshore existent property portfolio. Toll Brothers is much insulated than its peers from elevated owe rates due to the fact that astir 25% of Toll Brothers location buyers wage 100% successful cash.

A squad of architects gathering astir a blueprint to sermon the plan of a high-end flat rental.

Toll Brothers, Inc. (NYSE:TOL) is not connected our database of 30 Most Popular Stocks Among Hedge Funds. As per our database, 64 hedge money portfolios held Toll Brothers, Inc. (NYSE:TOL) astatine the extremity of the 4th fourth which was 54 successful the erstwhile quarter. While we admit the imaginable of Toll Brothers, Inc. (NYSE:TOL) arsenic an investment, our condemnation lies successful the content that AI stocks clasp greater committedness for delivering higher returns, and doing truthful wrong a shorter timeframe. If you are looking for an AI banal that is arsenic promising arsenic NVIDIA but that trades astatine little than 5 times its earnings, cheque retired our study astir the undervalued AI banal acceptable for monolithic gains.