Jim Cramer Recommended These 5 Stocks

3. Lennar Corporation (NYSE:LEN)

Stock Gain since August: 41.67%
S&P 500 Gain since August: 9.4%

Lennar Corporation (NYSE:LEN) is a home builder that constructs and sells single-family attached and detached homes in the United States. It also deals in residential land in addition to developing, constructing, and managing multifamily rental properties.

“The FED’s increase has failed because they did not raise the long end. Mortgage rates are still cheap historically, many are bought by cash but there is scarcity and this guys  have built far few that they should  Lennar Corporation (NYSE:LEN) is one of the biggest beneficiaries because they know how to build  a home well , they have always been,” Cramer said

As the second largest home builder in the US, Lennar Corporation (NYSE:LEN) boasts of competitive scale advantages. Consequently, it’s benefited from tight inventory in the real estate sector, allowing it to generate optimum returns from its investments. Strong demand for houses in the US market strengthens the stock sentiments.

Likewise, Lennar Corporation (NYSE:LEN) has outperformed the overall market going by 41.67% gains over the past 12 months compared to the 9.4% gain for the S&P 500.