Jim Cramer Says "Other Than Toll Brothers, I Think I Like Lennar Second Best"

Lennar Corporation (NYSE:LEN) is one of the stocks on Jim Cramer’s game plan this week. Cramer highlighted that he likes it “second best” among home builders, as he commented:

“… New York Fed President John Williams is going to comment… And you better believe he’ll talk about whether or not we need more rate cuts, in face of the persistently high inflation that we have. That’s all people are going to talk about, even if it overshadows the results from one of the biggest home builders, Lennar, which is later in the day. If the labor report is weak, that means the Fed can keep cutting. And if we’re headed for lower rates, then Lennar is a buy. Actually, I gotta tell you, other than Toll Brothers, I think I like Lennar second best.”

Lennar Corporation (NYSE:LEN) builds and sells single-family and multifamily homes, develops residential land, and manages rental properties for buyers ranging from first-time to luxury. During the September 25 episode, Cramer highlighted the importance of rate cuts for the company. He remarked:

“Needless to say, the earnings were not that good. Even worse, Lennar says their earnings for the current quarter are likely to come in below the expectation. And remember, Lennar is a fantastic company… They’re quite optimistic that stronger sales activity will come soon. So maybe you want to call it green shoots and that things can get better if rates continue to come down…

… Like everybody else in the industry, Lennar needs lower long-term interest rates. Usually, when the Fed cuts short rates, long rates will come down too, but that’s not always the case. Last fall, for instance, the Fed cut short rates and long rates skyrocketed. Worth keeping in mind. I mean, I know I’m very concerned that we could repeat last year’s fiasco as long rates are still creeping up higher after that last recent rate cut. That’s not good.”

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Disclosure: None. This article is originally published at Insider Monkey.