Jim Cramer Discusses KB Home (KBH) & Home Prices

We recently published 9 Stocks Jim Cramer Talked About.  KB Home (NYSE:KBH) is one of the stocks on Jim Cramer talked about.

KB Home (NYSE:KBH) is one of the largest homebuilders in America. Its shares are down by 11% year-to-date after suffering a major 10% dip in December. The stock fell after KB Home (NYSE:KBH) reported its fiscal fourth quarter earnings. The results saw the firm post $1.69 billion in revenue, $1.92 in earnings per share, and $5.10 billion and $6.10 billion in full-year fiscal 2026 revenue, which was below the 2025 revenue of $6.21 billion. Following the results, Wolfe Research cut its share price target for KB Home (NYSE:KBH) to $56 from $63 and kept an Underperform rating on the shares. Gross margins were a key concern shared by Wolfe, as it pointed out that the homebuilder could experience a drop in margins in its fiscal fourth quarter of 2026. Similarly, on the 19th, UBS also cut the share price target. Reducing it to $77 from $83 and keeping a Buy rating on the stock, the firm cited lower EPS estimates for fiscal years 2026, 2027, and 2028. Cramer commented on KB Home (NYSE:KBH) and home prices:

“The numbers are so horrible, I mean, the companies, they jacked prices up, and there was a tremendous drive to get them. And now we’re starting to realize, they have really overpriced their houses. While I care about the interest rate, it’s not as important as the collapse in pricing. This is the time to buy a home, who else has rolled back to 2018 prices other than Doug McMillon.”

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