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Jim Cramer Discusses Lennar (LEN) & Home Prices

We recently published 9 Stocks Jim Cramer Talked About.  Lennar Corporation (NYSE:LEN) is one of the stocks on Jim Cramer talked about.

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.”

While we acknowledge the risk and potential of LEN 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 LEN 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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