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Jim Cramer Discusses KB Home (KBH) & Home Prices

We recently published 9 Stocks Jim Cramer Talked About.  KB Home (NYSE:KBH) is one of the stocks on Jim Cramer talked about.

KB Home (NYSE:KBH) is one of the largest homebuilders in America. Its shares are down by 11% year-to-date after suffering a major 10% dip in December. The stock fell after KB Home (NYSE:KBH) reported its fiscal fourth quarter earnings. The results saw the firm post $1.69 billion in revenue, $1.92 in earnings per share, and $5.10 billion and $6.10 billion in full-year fiscal 2026 revenue, which was below the 2025 revenue of $6.21 billion. Following the results, Wolfe Research cut its share price target for KB Home (NYSE:KBH) to $56 from $63 and kept an Underperform rating on the shares. Gross margins were a key concern shared by Wolfe, as it pointed out that the homebuilder could experience a drop in margins in its fiscal fourth quarter of 2026. Similarly, on the 19th, UBS also cut the share price target. Reducing it to $77 from $83 and keeping a Buy rating on the stock, the firm cited lower EPS estimates for fiscal years 2026, 2027, and 2028. Cramer commented on KB Home (NYSE:KBH) and home prices:

Photo by Collov Home Design on Unsplash

“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.”

While we acknowledge the risk and potential of KBH as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than KBH and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.

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