Is Toll Brothers (TOL) a Good Investment Option?

Baron Funds, an investment management company, released its “Baron Real Estate Fund” third quarter 2022 investor letter. A copy of the same can be downloaded here. In the third quarter, the fund declined 4.86% (Institutional Shares) compared to a 4.99% decline for its primary benchmark, the MSCI USA IMI Extended Real Estate Index. At the same time, the fund outperformed the MSCI US REIT Index, which fell 10.28% in the quarter. In addition, please check the fund’s top five holdings to know its best picks in 2022.

Baron Funds highlighted stocks like Toll Brothers, Inc. (NYSE:TOL) in the Q3 2022 investor letter. Headquartered in Fort Washington, Pennsylvania, Toll Brothers, Inc. (NYSE:TOL) is a home builder that operates in Traditional Home Building and City Living segments. On November 18, 2022, Toll Brothers, Inc. (NYSE:TOL) stock closed at $45.52 per share. One-month return of Toll Brothers, Inc. (NYSE:TOL) was 5.64%, and its shares lost 30.30% of their value over the last 52 weeks. Toll Brothers, Inc. (NYSE:TOL) has a market capitalization of $5.159 billion.

Baron Funds made the following comment about Toll Brothers, Inc. (NYSE:TOL) in its Q3 2022 investor letter:

Toll Brothers, Inc. (NYSE:TOL) is a leading luxury homebuilder in the U.S. with a highly capable management team and a large, valuable owned land real estate portfolio. The company is valued at only 0.9 times tangible book value versus its long-term average of approximately 1.4 times book value and a peak multiple of approximately 2.0 times tangible book value.”

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Toll Brothers, Inc. (NYSE:TOL) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 32 hedge fund portfolios held Toll Brothers, Inc. (NYSE:TOL) at the end of the third quarter which was 29 in the previous quarter.

We discussed Toll Brothers, Inc. (NYSE:TOL) in another article and shared the best housing stocks to invest in. In addition, please check out our hedge fund investor letters Q3 2022 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.