Jim Cramer on KB Home: “A Well-Run Home Builder That Tells It Like It Is”

KB Home (NYSE:KBH) was among the stocks Jim Cramer discussed as he said that the Iran peace negotiations could trigger an oil glut, cool inflation, and pull interest rates down. Cramer called it a “well-run home builder,” as he stated:

I’m acutely focused on housing, as you know, because it punches above its weight. It’s a big part of the economy. So I’m going to make time to listen to the conference call of KB Home. That’s a well-run home builder that tells it like it is, very abject conference call. I sure hope they make some references to the Federal Reserve. The housing industry just feels like it’s dead in the water right now. There’s just not enough supply and not enough new homes.

Why should there be though with interest rates as high as they are? Why would a home builder step up to the plate? It’s really only Toll Brothers who can handle the situation. That’s because about a quarter of their homes are bought with cash.

A technical stock market chart. Photo by Energepic from Pexels

KB Home (NYSE:KBH) builds and sells homes for various buyers and provides related financial services, including mortgage, insurance, and title services.

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