Jim Cramer: Toll Brothers Could Gain from $1 Million Home Shortage

Toll Brothers, a prominent homebuilder, announced better-than-expected earnings for the recent quarter, leading to a significant stock increase of approximately 6%. Financial commentator Jim Cramer praised the results, describing it as a "remarkable quarter." He noted a notable shortage in the market for homes priced around $1 million, which are the primary offerings of Toll Brothers, suggesting a favorable environment for the company. In a contrasting performance, Target's shares surged by 13% after the retailer exceeded expectations in both earnings and revenue. Cramer highlighted this as the "first real upside surprise" for Target, especially following a disappointing quarterly report earlier in the year that had negatively impacted its stock performance. Meanwhile, Macy's faced challenges as it lowered its full-year sales outlook, resulting in a 13% drop in its stock price. Cramer interpreted this move as a sign of the department store chain's lack of confidence in the upcoming sales period, particularly with the back-to-school season approaching. American Express also experienced a decline, with Bank of America downgrading its stock from buy to hold due to concerns over muted consumer spending, causing a 3% drop in its shares. Despite this, Cramer noted that the stock has been consistently downgraded throughout its upward trajectory. In contrast, Texas Instruments received an upgrade from Citi, with Cramer attributing positive changes in capital allocation to the influence of activist investor Elliott Management.