Jim Cramer Discusses These 11 Stocks & President Trump’s Approval Drop

8. Toll Brothers, Inc. (NYSE:TOL)

Number of Hedge Fund Holders In Q4 2024: 64

Toll Brothers, Inc. (NYSE:TOL) is one of the biggest home-building companies in America. The firm has struggled recently as high interest rates have dampened construction activity and raised home prices to stifle demand. As a result, Toll Brothers, Inc. (NYSE:TOL)’s shares are up by a modest 11.20% over the past year as they struggle to recover from a 15% dip in December. The shares started their downward spiral after the firm’s fourth-quarter earnings report saw its backlog dip by 9% to 5,996 units. In February, the stock dropped by 5.9% after the firm’s first-quarter revenue and EPS of $1.86 billion and $1.75 missed analyst estimates. Here’s what Cramer said:

“. . .I know, I mean. . .January was tough. And by the way, I know Toll, I never like to talk while a conference call is on, but the statement yesterday, mixed spring selling season, not up to their own, their best. Dollar price of a Toll home, I’m embarrassed to say it’s a hundred and twenty, sounds like its, how it go down from a million but it went down a lot. And Doug Yearly, one of the great CEOs, I happen to like him personally because he’s from right were I’m from. And one of the things that just dazzles me is this is the first time. The first time during this whole run where they got hurt. And people have to understand, Toll makes really good homes.”

“Look I think that in some ways, the Fed’s getting what it wants. Now I know we have the minutes, I always discount them cause they’re from so long . . .yeah we have fresh economy every day. I love Doug and I said that, but I don’t want the week to week, well you know we had a great Saturday. I mean come on, the morning in Saturday was dynamite, the afternoon it was like nothing. Let’s get away from that. I want to stick with what he said, which is that things are changing. Not going in the right way. You know there was, when I take a look at what’s going on, in housing, if we don’t want the lower end to start doing worse. Now when it’s just the high end’s doing well, what happens is the high end happens to be located where there are a lot of jobs. The lower end tends to be located where there are not as many jobs. So it’s the haves, or the haves get it. Now, I want to hear from Horton, because they’re all, their homes are very inexpensive versus toll. These stocks are going, they’re signaling, look out, the mortgage rates are way too high.”