Jim Cramer Discusses These 10 Stocks & Wonders If Trump Will Try Firing The Fed Chairman

2. Lennar Corporation (NYSE:LEN)

Number of Hedge Fund Holders In Q4 2024: 70

Lennar Corporation (NYSE:LEN) is one of the biggest home-building companies in America. In his previous remarks about the firm, Cramer has called the firm a housing “kingpin.” He has added that when it comes to firms like Lennar Corporation (NYSE:LEN), he evaluates them on weekly data instead of monthly. Lennar Corporation (NYSE:LEN)’s shares dipped by 7.2% in March after the firm’s latest gross margin fell to 18.7% from an earlier 21.8%. Commenting on the latest results, here is what Cramer said:

“Right, I mean, I look at these and I say, there are many things that are good, and there are many things that are bad. And that is the way to look at this economy. I mean, are home prices going up in value? No, they were actually down a percent. Does that mean that it’s the end of the world for Lennar? No, they’re still making a lot of money. Are they happy? Well, no, because they used to beat the numbers handily. Should the stock be down another eight dollars? Yes, if you think that the Federal Reserve is going to be on hold. Because higher interest rates hurt them. Should it be down this much and is it the time to buy? I can’t come up with a reason to buy, but I don’t know. It is inexpensive relative to the last five years. And I don’t want to throw out the last five years of history, Sarah, because I think the company is a really good company.”

“[on how the stock rose even when the Fed was raising rates] Well that was the extraordinary thing. Everyone was negative on the stock and it had a big run. People just kept fighting. Look I, there’s no doubt about it, the home builders went up with the price of homes. And now they’re going down with the price of homes. But the price of homes is not falling precipitously. We still haven’t been able to solve the giant shortage of homes. And Lennar’s a great homebuilder. So no I am not encouraging people to buy it. I am saying that unlike at 160, 180, there’s more good that should be factored in.”