Toro (TTC) Valuation: Is the Recent Slide an Opportunity for Long-Term Investors?

Toro (TTC) has faced steady declines across the past month, sliding nearly 8% as investor sentiment continues to adjust. Shares closed at $68.69 most recently, raising some questions about what could come next for the company.

See our latest analysis for Toro.

It has been a challenging stretch for Toro, as momentum has faded after a series of gradual declines; the stock’s 1-year total shareholder return stands at -14.4% and its price slump has deepened since the start of the year. While recent sessions reflect weaker conviction, long-term holders have seen pressure build with a 3-year total return of -35.3%. This suggests that investor risk perception is still shifting, even after several years of strategic moves and operational growth.

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Given the recent pullback and the sizable gap to analyst price targets, is Toro simply trading at a discount due to market pessimism, or is the lower price a signal that future growth is fully accounted for?

Most Popular Narrative: 25.8% Undervalued

Toro’s latest closing price is well below the narrative’s estimated fair value, signaling a sizeable gap that could attract opportunistic investors. The difference is based on more optimistic long-term projections compared to the market's current expectations, adding extra intrigue to the valuation story.

Ongoing investments and recent product launches in smart, connected, and autonomous turf and irrigation solutions (for example, GeoLink Mow Autonomous Fairway Mower and TurfRad moisture sensing) directly position Toro to benefit from increasing automation in landscaping and heightened focus on water conservation. These trends may support future premium product revenue growth and higher net margins.

Read the complete narrative.

Want to know why the narrative puts so much faith in Toro’s future? Behind the fair value is a profit forecast that expects a major leap in margins, with revenue and earnings growth assumptions that are more bullish than you might expect from recent results. Uncover which aggressive financial projections are shaping this price target.

Result: Fair Value of $92.60 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent weakness in residential demand or sharp input cost inflation could threaten Toro’s margin growth story if market conditions worsen unexpectedly.

Find out about the key risks to this Toro narrative.

Build Your Own Toro Narrative

If you see things differently or want to dig into the details on your terms, you can shape your own perspective in just a few minutes. Do it your way

A great starting point for your Toro research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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