10 Stocks Jim Cramer Talked About

2. KB Home (NYSE:KBH)

Number of Hedge Fund Holdings: 31

KB Home (NYSE:KBH), like other homebuilding stocks, has also suffered in a high-interest-rate environment. The shares are down by 2.5% over the past year, but are up by 9% year-to-date. However, in December, KB Home (NYSE:KBH)’s shares had dipped by 10% after the firm’s fiscal fourth quarter earnings. The results saw the firm’s fiscal 2026 revenue guidance of $5.10 billion to $6.10 billion sit below 2025 revenue of $6.21 billion. After the results, Wolfe Research cut KB Home (NYSE:KBH)’s share price target to $56 from $63 and kept an Underperform rating as it pointed out that the firm’s gross margins could drop in its fourth quarter of fiscal year 2026. UBS also cut the share price target to $77 from $83 and kept a Buy rating and lowered its EPS estimates for the coming fiscal years. In this appearance, Cramer discussed UBS’ latest coverage of the stock, which saw it cut the share price target to $71 and keep a Buy rating:

“Alright David, you talked about what punches above its weight. And that’s housing, as well as Ford stock. Okay, this morning, jeez these research firms are taking aim at housing. . .And then, UBS. . .KBH, price target cut. This is a sign, again, rates are too high, rates are too high, and that’s because they were so low. . .it’s relative to where they were and you can’t buy starter homes. . . .these cannot get any traction, none. . .”