Jim Cramer Recommends Toll Over PulteGroup Among Home Builders

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PulteGroup, Inc. (NYSE:PHM) was among the stocks Jim Cramer discussed on Mad Money, highlighting several companies with market caps over a trillion dollars. Toward the end of the lightning round, when a caller inquired about the stock, Cramer commented:

Okay, look, I like Toll because they have so many cash buyers. They have more than 20% cash buyers, and they don’t need a mortgage. Many of these people don’t need a mortgage, which is really incredible. That’s why I think that stock is the one to buy if you’re going to buy a home builder.

Photo by Adam Nowakowski on Unsplash

PulteGroup, Inc. (NYSE:PHM) builds and sells single-family detached and attached homes, including townhomes and condominiums, under several distinct brands. The company also handles land acquisition and residential development alongside its mortgage banking, title, and insurance services. Harbor Capital Advisors’ Mid Cap Value Fund stated the following regarding PulteGroup, Inc. (NYSE:PHM) in its Q4 2025 investor letter:

While several Fund holdings struggled — including PulteGroup, Inc. (NYSE:PHM) in the Consumer Discretionary sector. PulteGroup, in the homebuilding industry, struggled due to slowing orders and margin pressures despite a slight decrease in mortgage rates. We continue to hold PulteGroup in the Fund.

While we acknowledge the potential of PHM as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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