We recently published 15 Stocks Jim Cramer Mentioned As He Said Quantum Computing Worried Him. KB Home is one of the stocks Jim Cramer recently discussed.
Homebuilder KB Home’s shares are down by 2.1% year-to-date as persistent weakness in the housing market complicates the firm’s operations. Cramer has discussed the company several times on his morning show. He has linked KB Home’s performance with mortgage rates and remarked that lower rates could help the firm. The CNBC TV host has gone as far as to comment that he won’t trade the stock until the rate cut environment becomes clearer. Here’s what he said about KB Home in this show:
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“Jeff Mezger, CEO of KB Homes, not that constructive. Did say that December is historically going to be a month where you don’t want to sell. Because you sell and you hurt your margins. Very good lesson in homebuilding, in the KB Homes call. The stock is up because people feel they’re being prudent. By buying stock, now it’s above book. But they bought back a lot of stock rather than build a lot of homes. And I think that’s prudent because homes aren’t selling that well. Mortgage rates have to come down.”
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This article is originally published at Insider Monkey.
