Toro (TTC)
NYSEIndustrialsManufacturing - Tools & AccessoriesSnapshot 2026-09-09
$94.750.00%
Close 2026-09-09 · 1-day change
NYSEIndustrialsManufacturing - Tools & AccessoriesSnapshot 2026-09-09
Intact: The reason to own it still holds.
Toro keeps raising its sales growth guidance to 4%-6.5% for FY26. Adjusted EPS guidance is up to $4.50-$4.62, showing strong profit growth. Cash from operations improved sharply, rising from $26M to $267M in recent quarters. The company beat Q2 earnings with 8.1% revenue growth and 6.7% EPS surprise.
Toro faces sector headwinds that could slow demand. Profit margins might compress if costs rise. The stock trades below peer multiples, reflecting some risk. If revenue growth falls below 4%, the business could be weaker than expected.
The price is about 33% below our fair value near $142. Analysts expect 5.2% revenue growth, slightly below Toro's raised guidance. Our view is more optimistic on growth and cash flow than the market.
Breaks if: Adjusted EPS falls below $4.50 in FY26
Increase full-year adjusted EPS guidance reflecting strong earnings growth and operational execution.
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
This investment represents a durable compounder with a focus on consistent revenue and earnings growth. The current thesis state is stable, supported by recent strong financial performance, although confidence has shifted to medium due to recent earnings misses.
The market appears to have priced in a low level of fragility, as TTC is seen as cheap compared to its peers. There is an expectations gap indicating that investors may not fully anticipate the potential for continued growth in sales and earnings.
Management is on track with its priorities, including increasing sales and earnings guidance, and integrating the Tornado acquisition. However, there is a moderate risk due to a recent earnings miss, which could affect confidence in the near term.
The thesis hinges on the performance of sector bellwethers like SNA, RBC, and LECO. If these companies continue to perform well, it could provide a favorable backdrop for TTC. Conversely, any negative guidance from these peers could pose a risk to TTC's momentum.
The most important moves since the prior daily snapshot.
Company momentum rose by 17.3 points (from 1.7 to 19.0).
Mixed, the news cuts both ways. The company raised its full-year adjusted EPS guidance. This supports the overall financial health of the company. However, shares fell despite the earnings beat. This indicates market concerns about future performance.
as of 2026-09-09
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Stated as a priority in 3 of last 3 quarters. Diluted EPS increased from $0.69 in 2026-Q1 to $0.81 in 2026-Q3 (+17.4%). Management raised full-year adjusted EPS guidance from $4.35-$4.50 in 2026-Q1 to $4.60-$4.65 in 2026-Q3. The trajectory is delivering with consistent earnings growth and guidance increases.
“Adjusted EPS guidance raised to $4.60 to $4.65, up from $4.50 to $4.62.”
“Adjusted EPS guidance raised to $4.50 to $4.62, up from $4.40 to $4.60.”
“Adjusted EPS guidance raised to $4.40 to $4.60, up from $4.35 to $4.50.”
Breaks if: Cash from operations falls below $200M in any quarter
Breaks if: YoY revenue growth falls below 4.0% in FY26
Raise full-year net sales growth guidance reflecting strong demand and operational execution.
Stated as a priority in 3 of last 3 quarters. Revenue grew from $1.04B in 2026-Q1 to $1.23B in 2026-Q3 (+18.2%). Management raised full-year net sales growth guidance from 2-5% in 2026-Q1 to 6.3-6.6% in 2026-Q3. The trajectory is delivering with consistent upward revisions and revenue growth.
“The company is raising its full-year net sales growth guidance to 6.3% to 6.6%, up from 4.0% to 6.5%.”
“The company is raising its full-year net sales growth guidance to 4.0% to 6.5%, up from 3.0% to 6.5%.”
“Management now expects total company net sales growth in the range of 3% to 6.5%, up from 2% to 5%.”
In the next 1 to 3 years, TTC's performance will depend on management's execution and the broader industrial sector's health. Not investment advice.