We recently published a list of Top 10 Stocks Everyone is Talking About. In this article, we are going to take a look at where Toll Brothers, Inc. (NYSE:TOL) stands against other top stocks everyone is talking about.

Investors are on tenterhooks amid the latest selloff as they keep up with President Donald Trump’s volatile tariff policies and assess the slowing enthusiasm in the AI trade. Trivariate’s Adam Parker said in a latest program on CNBC that while he wants to be bullish on the stocks for a rebound, he believes we haven’t seen the bottom yet. The analyst recommends going on the defense:

“I mean every part of me wants to get bullish again, right? You know, we had the good call of saying the market will be down in the first half and choppy with concerns about tariffs and all that. And you know, now we’ve seen a lot of people who were bullish before throwing in the towel and getting bearish, and I really want to do it, right? But I can’t. And the reason is because I don’t think we’ve seen enough of a blowoff on the positioning. I mean, if you look at the companies that were talking at big conferences in March, a lot of things are slowing. And so I think this is more than a growth scare already—this is actually like a growth slowdown. And so the question is, will we get negative guidance in April? Will we see companies guide down and the stocks not go down? If I see that behavior, then I’ll probably want to get more risk on. But until then, I think we have to play a little bit more defense.”

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For this article, we picked 10 stocks Wall Street analysts are showing interest in. With each stock, we have mentioned their hedge fund sentiment. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

Toll Brothers, Inc. (NYSE:TOL)

Number of Hedge Funds Investors: 54

Jim Cramer in a latest program on CNBC said that Toll Brothers, Inc. (NYSE:TOL) shares lost value amid rising interest rates but the stock can rebound amid the changing environment:

“If you take up a chart of Toll Brothers, if you look at a chart right now, that is just a year and a half. Okay, so it’s now lost everything that it made since July of last year. That was, that’s a rather remarkable. Now, it did trade as low as 75, you know, two years ago, but it’s important to remember we’re sitting here and we’re saying, “Oh my God, oh my God.” Well, one, interest rates are going the direction of the Bulls. Just when interest rates are going now, are people going to buy, not buy homes because they’re worried? Sure, but how about if mortgage rates go lower? Maybe they think they have their chance. So, I just want to urge people to realize that it isn’t like the market woke up and said, “Oh my God, the president’s anti-stocks.” The president’s been consistent the whole way, terrible for the market, terrible. So, if people wake up today and say, “Oh my God, he’s terrible,” I would say, “You know what, where you been?” And that the markets figure that out, right? And if interest rates plummet, then I don’t care what Trump says. I know the consumer’s weak. I’m sure the numbers are going to be bad, but there doesn’t have to stay the way.”

Baron Real Estate Fund stated the following regarding Toll Brothers, Inc. (NYSE:TOL) in its Q4 2024 investor letter:

“As noted earlier in this letter, we chose to decrease the Fund’s homebuilder exposure in D.R. Horton, Inc., Lennar Corporation, and Toll Brothers, Inc. (NYSE:TOL) in the most recent quarter following exceptional share price performance over the prior two years. From September 30, 2022, through September 30, 2024, shares of Toll Brothers, Lennar, and D.R. Horton increased 269%, 155%, and 184%, respectively. Homebuilder valuations for our investments had approached near peak valuations from prior cycles (at or above 2 times tangible book value). We also have concerns that the recent 100 basis point increase in interest rates will further crimp housing affordability. This could lead to flattening home prices and elevated homebuilder incentives to entice buyers to purchase a home. Further, the new administration policy decisions around tariffs, immigration, and deportation may increase the cost for labor and materials. The issues cited above may lead to pressure on homebuilder gross margins in 2025.

The shares of several homebuilders and residential-related building product/ services companies foreshadowed some of these concerns in the fourth quarter and valuations are becoming more compelling. We are monitoring developments closely and may look to acquire additional shares in 2025…” (Click here to read the full text)

Overall, TOL ranks 6th on our list of top stocks everyone is talking about. While we acknowledge the potential of TOL, our conviction lies in the belief that under the radar AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than TOL but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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