Jim Cramer Says "KB Home is Just a Trade"

KB Home (NYSE:KBH) is one of the stocks Jim Cramer offered insights on. Cramer mentioned that the stock is quite dependant on Fed cutting rates, as he said:

“In the evening, KB Home reports, and I bet it follows in the footsteps of Lennar, which got hit really hard today off of some gross margin pressure and the aforementioned stubbornly high mortgage rates. By the way, can I just say, Stuart Miller of Lennar? He’s fabulous. So if they were struggling, everybody’s struggling. These home building stocks simply won’t get traction until the Fed says it’s not as worried about inflation and it sees a clear path to taking the federal funds rate down to two, two and a half percent. Until that they do, KB Home is just a trade, and I don’t want to trade. I talk a lot about that in my book. Trading is for suckers, okay? It’s for suckers.”

KB Home (NYSE:KBH) designs and sells single-family homes, townhomes, and condominiums for a range of buyers. The company also provides mortgage, insurance, and title services. While we acknowledge the potential of KBH as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now. Disclosure: None. This article is originally published at Insider Monkey.