Is Toll Brothers (TOL) The Best Housing Stock to Buy Amid Fed Rate Cuts?

We recently published 10 Most Popular Analyst Calls to Watch This Week. Toll Brothers, Inc. (NYSE:TOL) is one of the trending stocks.

Courtney Garcia from Payne Capital Management recently recommended TOL in a latest program on CNBC. Here is what the analyst said:

“You saw the home builders downgraded and everything was down. I don’t think you want to throw out the baby with the bath water. I think Toll Brothers Inc (NYSE:TOL) is one to look at, which has the wealthier consumer. They’re more likely to buy in all cash. I think if you want to be in the space, that’s where you want to be.”

Toll Brothers is one of the top homebuilding companies in the US. It builds, markets, and finances for residential and commercial properties.

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Baron Real Estate Fund stated the following regarding Toll Brothers, Inc. (NYSE:TOL) in its Q1 2025 investor letter:

“Toll Brothers, Inc. (NYSE:TOL) is a leading luxury homebuilder in the U.S. with an exceptional management team and a large, valuable owned land real estate portfolio. Toll Brothers is more insulated than its peers from elevated mortgage rates because approximately 25% of Toll Brothers home buyers pay 100% in cash.

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 extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

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