NEW YORK (TheStreet) -- Shares of Toll Brothers (TOL) are slightly higher on Thursday, after sliding roughly 10% on Wednesday following the release of its earnings report. But investors misinterpreted the conference call, said TheStreet's Jim Cramer, co-manager of the Action Alerts PLUS portfolio.
"People really hated the call," he said on CNBC's "Cramer's Mad Dash" segment. CEO Doug Yearley is not nearly as negative as people have portrayed him, Cramer commented. The housing market is set up for a multi-year opportunity and the industry is still building too few homes for demand, Cramer said.
Stop listening to the analysts and start listening to the conference calls, Cramer suggested. Toll Brothers has a "very smart buyback" -- 2.94 million shares bought back at an average price of $30.78.
"That's the floor in the stock," Cramer said.
That brought Cramer's attention to a housing retail play, Restoration Hardware (RH) . The company beat on earnings per share and revenue estimates, the latter of which grew 22.5% year-over-year. The 22% comparable-store sales growth is fueling the stock's 13.5% rise on Thursday.
Cramer was particularly excited about the stock, praising CEO Gary Friedman for his vision and store layouts.
"You want to live in their stores," Cramer said.
Restoration Hardware's expansion plans are promising and any investor considering a position in the stock should watch the third-quarter video presentation, Cramer stressed.