Jim Cramer on Toll Brothers: “Very Tough to Own a Home Builder When Rates Are Rising”

Toll Brothers, Inc. (NYSE:TOL) was among the stocks Jim Cramer looked at as he explained the need for a tame bond market for the stock market to go higher. Cramer called it his “favorite home builder, as he commented:

After the close, we get numbers from my favorite home builder, Philly-based Toll Brothers, which produces high-end housing. Been a decent time for Toll, but not blowout. Still very tough to own a home builder when rates are rising. This stock isn’t down as much as the others. How about that for, hey, it’s not down as bad as the others. There’s a calling card.

A technical stock market chart. Photo by Energepic from Pexels

Toll Brothers, Inc. (NYSE:TOL) builds luxury homes and communities, including single-family houses, condos, and apartments, often with a range of amenities. During the episode aired on December 11, 2025, a caller inquired about the stock, and Cramer responded:

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).

While we acknowledge the risk and potential of TOL as an investment, our conviction lies in the belief that some 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 and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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