Jim Cramer on Toll Brothers: “Terrific Quarter, But the Forecast Wasn’t as Positive”

Toll Brothers, Inc. (NYSE:TOL) is one of the stocks Jim Cramer highlighted in light of the Fed rate cut. Cramer mentioned the company’s latest quarter performance during the episode, as he stated:

“Let me tell you the three things that really do matter. One, the Fed is our friend, not our enemy. Two, the bulls aren’t fighting the tape. And three, longer-term rates fell in response to the rate cut. It’s a trifecta that allows the stock market to roar. What do you do in this situation? Well, you buy stocks that do better when rates are lower, even a quarter point lower. That means you buy the home builders and you buy the retailers that are connected to the home builders. You go with the ones that we’ve recently heard from. That means you buy Toll Brothers, which just reported a terrific quarter, but the forecast wasn’t as positive. That means, well, the narrative could change, right?… They worried about a negative future, well, maybe it’s a little more positive.”

Toll Brothers, Inc. (NYSE:TOL) builds luxury homes and communities, including single-family houses, condos, and apartments, often with several amenities.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

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