We recently published a list of 15 Stocks on Jim Cramer’s Radar. In this article, we are going to take a look at where Toll Brothers, Inc. (NYSE:TOL) stands against other stocks on Jim Cramer’s radar
On Friday’s episode of Mad Money, Jim Cramer reflected on this week’s market performance, with attention to upcoming earnings reports and broader market sentiment.
“Now we’ve been on a real rebound since post-Liberation Day meltdown back in the first week of April, with tech leading the way after really taking it on the chin.”
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According to Cramer, the rebound has been largely driven by tech stocks, which had previously been under pressure. However, he expressed uncertainty about whether that trend will hold, as he mentioned that the tech sector has been relatively quiet in terms of news, aside from a keynote from Jensen Huang. Looking ahead, Cramer noted that more retail earnings are expected this week.
“But here’s the bottom line: Unless we get news of new hostilities in the trade war with China, I think this market’s propensity will still be to go higher, even though we are overbought. And even with this late-night credit rating downgrade of the US debt, which is very quizzical to me, I think we’re containing the downside of the economy, and that means no recession, which tells me the negativity may be out of sync with the reality. That’s often the best kind of market…”
Our Methodology
For this article, we compiled a list of 15 stocks that were discussed by Jim Cramer during the episodes of Mad Money aired on May 16. We listed the stocks in the order that Cramer mentioned them. We also provided hedge fund sentiment for each stock as of the fourth quarter of 2024, which was taken from Insider Monkey’s database of over 1,000 hedge funds.
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 Fund Holders: 64
Cramer mentioned that he thinks that Toll Brothers, Inc. (NYSE:TOL) will report good numbers, as he said:
“Hey, one thing is for certain: nobody cares for the home builders. This group’s been down so long, it almost looks up to me. Consider the case of Toll Brothers, the highest-end home builder. Toll reports on Tuesday evening. I think the numbers are going to be real darn good. I think the stock should be able to bounce.
The chart looks terrific, but the company will most likely have to be restrained with its guidance because there’s still pervasive sense of negativity out there. At seven times earnings, though, I think you want to own this one, even if their forecast isn’t a thing of beauty. Yes, I know when it’s seven times earnings, that means it probably will not have a higher forecast, but maybe it’s just time to pull the trigger on some.”
Toll Brothers (NYSE:TOL) specializes in building upscale homes, including single-story houses and condominiums. The company also develops residential communities that feature a range of amenities.
Overall, TOL ranks 6th on our list of stocks on Jim Cramer’s radar. While we acknowledge the potential of TOL as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than TOL and that has 100x upside potential, check out our report about this cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
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