Jim Cramer on Toll Brothers: “That’s Exactly What You Buy Here”

Toll Brothers, Inc. (NYSE:TOL) is one of the stocks on Jim Cramer’s radar recently. A caller was bullish on the stock during the episode, and Cramer commented:

“Oh, you’re so right. Look, that’s exactly what you buy here. I think Toll is doing phenomenally. You know, look, the only thing that was bad was that he said, look, if rates don’t come down, we’re not going to have good numbers. Well, guess what? Rates are coming down. I totally agree with Robert (the caller).”

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Toll Brothers, Inc. (NYSE:TOL) builds luxury homes and communities, including single-family houses, condos, and apartments, often with several amenities. During the December 10 episode, Cramer discussed the stock in light of the Fed rate cut, as he remarked:

“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.”

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