We recently published a list of Jim Cramer’s Latest Portfolio: Top 10 Stocks to Watch. In this article, we are going to take a look at where Toll Brothers, Inc. (NYSE:TOL) stands against other top stocks to watch from Jim Cramer’s latest portfolio.

Jim Cramer in a latest program on CNBC said that pain is “inevitable” in the stock market as investors go through the volatility infused by the latest tariffs announced by the US government against China, Canada and Mexico. However, Cramer said investors should get used to this volatility and be ready for different situations.

“Commerce Secretary Howard Lutnick said in the last of his myriad interviews of the day that maybe the Canadian and Mexican tariffs could be partially rolled back, perhaps as soon as tomorrow. Yes, it is all that capricious, and you better get used to it if you’re going to own stocks,” Cramer said.

READ ALSO: 7 Best Stocks to Buy For Long-Term and 8 Cheap Jim Cramer Stocks to Invest In

For this article, we picked 10 stocks Cramer has been talking about recently. With each company we have mentioned the number of hedge fund investors. 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 Investors: 64

Jim Cramer in a latest program on CNBC discussed the reasons why Toll Brothers, Inc. (NYSE:TOL) shares fell following earnings. Cramer said TOL is one of his favorite homebuilder stocks.

“Last night, Toll Brothers, one of my favorite homebuilders, reported a quarter that was mixed, and the stock just got hammered. The entire group took a hit. The conference call was instructive because it showed cracks developing, with lower average housing prices around the country and some very soft markets—something that’s not supposed to happen when the Fed is cutting rates. Mortgage rates are still way too high for this group.”

Cramer mentioned Toll Brothers (NYSE:TOL)’s management comments from the latest conference call where they pointed to high prices in certain areas.

“Those prices have to come down—that’s raw inflation. They have to come down before we beat inflation in this country. Toll Brothers, the entire industry,” Cramer said.

Overall, TOL ranks 6th on our list of top stocks to watch from Jim Cramer’s latest portfolio. While we acknowledge the potential of TOL as an investment, our conviction lies in the belief that under the radar 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 but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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