10 Stocks Jim Cramer Talked About

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1. Lennar Corporation (NYSE:LEN)

Number of Hedge Fund Holdings: 63

Lennar Corporation (NYSE:LEN) is another homebuilding stock that has struggled. Over the year, its shares are flat, but year-to-date they are up by 15%. January has proven to be an important month for the firm after it sold a stake in its multifamily business to asset management firm TPG, which also committed an additional $1 billion. On the 7th, Citizens Financial downgraded Lennar Corporation (NYSE:LEN)’s shares to Market Perform from Market Outperform after the firm’s fiscal fourth quarter earnings report. The financial firm pointed to inventory clearance as the reason behind the pessimism, as it believes Lennar Corporation (NYSE:LEN) might have to wait for a couple of quarters before completely clearing its inventory. Cramer discussed UBS’ downgrade that reduced the rating to Neutral from Buy and tied it with interest rates:

“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 downgrades Lennar. . .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. . .”

While we acknowledge the potential of LEN to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than LEN and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

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