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Jim Cramer Reveals Why KB Home (KBH)'s Stock Is Up

By Ramish Cheema | September 29, 2025, 5:11 PM

We recently published 15 Stocks Jim Cramer Mentioned As He Said Quantum Computing Worried Him. KB Home (NYSE:KBH) is one of the stocks Jim Cramer recently discussed.

Homebuilder KB Home (NYSE:KBH)’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 (NYSE:KBH)’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 (NYSE:KBH) in this show:

Jim Cramer Reveals Why KB Home (KBH)'s Stock Is Up
Rrrainbow/Shutterstock.com

“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.”

While we acknowledge the potential of KBH as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, 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.

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