Shares of Toll Brothers (TOL) have done well this year, up 22% in 2017 and 37% over the past 12 months. The company is scheduled to report earnings on Tuesday before the open.
Last quarter was "very, very good" for Toll Brothers, TheStreet's Jim Cramer, manager of the Action Alerts PLUS portfolio, said from the floor of the New York Stock Exchange Monday.
Toll is able to increase sales as U.S. employment continues to improve. Even though the lower class isn't necessarily rolling in the cash, this isn't Toll Brother's key market, Cramer noted.
In addition to its solid residential sales, its urban initiatives are very strong, he reasoned. Overall, the company is doing well and as a result, Cramer said Toll's stock could go higher.
Analysts expect Toll Brothers to earn 63 cents per share on $1.27 billion in revenue for the most recent quarter.
At the time of publication, Cramer's Action Alerts PLUS had no position in any companies mentioned.