Mortgage rates have fallen recently, with the Fed’s September cut contributing to the decline. Toll Brothers’ latest quarter showed strong profitability and cash returns, with shares trading at just 10 times earnings, indicating potential upside if demand improves. The company’s fundamental strength was underscored in the third quarter, with revenue up 6% year over year. Toll’s resilience in the face of high interest rates was evident in steady orders and a focus on price over pace. Despite a lower backlog, management remains confident in the company’s long-term performance and reiterated full-year guidance.

Read more at Yahoo Finance: 1 Top Stock to Buy That Will Likely Benefit From Declining Interest Rates