We recently published a list of Jim Cramer Discusses These 11 Stocks & Reveals Why Tech Stocks Are Down. In this article, we are going to take a look at where Lennar Corporation (NYSE:LEN) stands against other stocks that Jim Cramer discussed.
In a recent appearance on CNBC’s Squawk on the Street, Jim Cramer discussed his takeaways from last week’s GTC conference. The event saw Wall Street’s top AI GPU firm unveil its plans for enabling a robot revolution among others. Commenting on his experience, Cramer speculated that he would have understood the AI wave much better had he had an education in engineering instead of in the liberal arts:
“It was a week of intimidation. Because I’m a liberal arts person. . . .it has its advantages, I mean we’ve read Shakespeare, studied the Bible. . .but I had to have everything explained to me in order to be able to be in the room. But once it was explained to me, it was very clear that the bulls are right about AI. The bulls are right about the money it’s going to take and the speed it’s going to take. This is about need for speed now. And it’s a war among Grok and ChatGPT.”
While the conference came with big announcements, its impact on the stock market was negligible. March has been a tough month for stocks, with technology companies particularly failing to recover from a selloff that wiped $4 trillion in market value from the flagship S&P index over its post-election high. Cramer explained why tech stocks haven’t performed well. According to him:
“One of the reasons why the tech stocks have gotten hit is almost everyone’s convinced that if you import anything, there’s going to be 20% tax or 25% tax. So therefore, all numbers have to come down. If you could get a reprieve on that, then the multiple expansion on just regular, garden variety tech would be extraordinary. You’d have to put your money on that. It could lead over to Mag 7, yes. I think our great friend Mike Wilson, with his weekly warmup of Mag 7, I think it was a significant piece. And a lot of it has to do with this notion that these stocks have been made cheap, by both, by bonds, I think they’ve been made cheap by tariffs. So you would revert to them, rather than the lower quality stocks that make up the rest of the S&P 500 equal weight. I think that this is important David, because you know we’ve been taken up by companies that neither you nor I think are great companies. But they’re just, companies. Nothing special.”
Our Methodology
To make our list of the stocks that Jim Cramer talked about, we listed down the stocks he mentioned during CNBC’s Squawk on the Street aired on March 24th.
For these stocks, we also mentioned the number of hedge fund investors. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
Lennar Corporation (NYSE:LEN)
Number of Hedge Fund Holders In Q4 2024: 70
Lennar Corporation (NYSE:LEN) is a frequent feature of Cramer’s morning show. He has shared that the firm is using AI to optimize its workforce allocations and remained overall positive about the company. Lennar Corporation (NYSE:LEN)’s shares are down by 5.3% year-to-date due to declining sentiment about the US economy. Cramer has also commented that the firm will be crucial for building affordable homes in America. Here are his latest comments:
“[On a recent downgrade from Evercore] Yeah, I’ll tell you why. Remember I was talking about how, people didn’t like Micron, and they didn’t like FedEx last week. . . Now, David, here’s a downgrade about Lennar. Lennar bucked the trend. As rates went up, very rarely have you ever seen homebuilder stocks go up. Now, rates are allegedly coming down, right. And you usually are supposed to buy these stocks. Everyone downgraded Lennar after that quarter. So, I think you would say, well where were you guys at 180, but now, at 115 they’re all against it. I’m beginning to think you have to take the other side of the trade. I know that the costs are going up because of the tariffs. I know that rates are not coming down the way they want them. However, when you look at valuation, they’re suddenly becoming worth a lot more than I thought. And so I don’t wanna throw away Lennar.”
“Lennar has the ability to actually make a lot more homes. So if we want to fixate just on gross margins, maybe we’re missing the larger picture. Which is that, we don’t have enough homes. And they’re a beneficiary. Be more thoughtful about your downgrades, please.”
Overall, LEN ranks 4th on our list of stocks that Jim Cramer discusses. While we acknowledge the 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 but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires
Disclosure: None. This article is originally published at Insider Monkey.
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