9 Stocks Jim Cramer Talked About

6. Lennar Corporation (NYSE:LEN)

Number of Hedge Fund Holdings: 63

Lennar Corporation (NYSE:LEN) is another major American homebuilder. The shares are down by 15% year-to-date and down by 10.6% since mid-December. On December 16th, Lennar Corporation (NYSE:LEN) reported its earnings for the fiscal year 2025 and the fourth quarter. Its $9.4 billion in revenue beat estimates of $9 billion, while $1.93 in EPS missed $2.21 in estimates. Following the results, Wells Fargo lowered Lennar Corporation (NYSE:LEN)’s share price target to $110 from $125 and kept an Equal Weight rating on the shares. The investing bank explained that the homebuilder’s forward guidance was worrisome. As UBS cut KB Home’s estimates after the earnings report, Wells reduced them for Lennar Corporation (NYSE:LEN). The bank now expects the homebuilder to post $6 for its fiscal year 2026 earnings. As was the case with Wells, Oppenheimer reduced its fiscal 2026 earnings estimates by 26% for Lennar Corporation (NYSE:LEN) after the earnings report. The firm kept a Perform rating and added that it expects the firm to deliver an 8% return on equity in its fiscal year 2026. Cramer discussed Lennar Corporation (NYSE:LEN) in the context of home prices and the broader environment the firm is operating in:

“The numbers are so horrible, I mean, the companies, they jacked prices up, and there was a tremendous drive to get them. And now we’re starting to realize, they have really overpriced their houses. While I care about the interest rate, it’s not as important as the collapse in pricing. This is the time to buy a home, who else has rolled back to 2018 prices other than Doug McMillon.

“Stuart Miller, as much as I like him, very much, I did not feel that he had it under control, I did not feel that he had the situation under control.”