Connect with us

Hi, what are you looking for?


Jim Cramer recommends owning homebuilder stocks: here’s why

buy homebuilder stocks jim cramer

“DJSHMB” – the Dow Jones U.S. Select Home Construction Index is already up more than 30% versus its June low. Still, Jim Cramer says the homebuilder stocks are not out of juice just yet.

Technicals suggest more upside ahead

The U.S. central bank is currently signalling a terminal rate of 5.1% this year. Simply put, it’s expected to raise rates further in the coming months.

Typically, that would mean bad news for the construction space. But “technicals”, as per the famed investor, are telling a different story.

Chart is screaming that it’s not too late to buy homebuilders. We’re looking at a classic reversal pattern, an inverse head and shoulders pattern. The group has broken out to a new high. The chart says something good is happening here.

His remarks were based on data from market technician Dan Fitzpatrick.

Cramer reveals top homebuilder stock to own

In December, the monthly new home sales were reported to have climbed to 640,000 – way more than 600,000 that experts had forecast.

Within the homebuilder stocks, a name that particularly pops out to Cramer is Lennar Corp (NYSE: LEN) that’s already gained about 35% over the past three months. On Mad Money, he said:

Fitzpatrick wants to pick the strongest of the bunch. That’s Lennar, which has the advantage of being among the best front players in the industry. It’s outperforming 91% of the market. It’s a clear winner in a lousy environment.

Last month, Lennar Corp reported better-than-expected per-share profit for its fourth financial quarter. Wall Street also has a consensus overweight rating on “LEN”.

The post Jim Cramer recommends owning homebuilder stocks: here’s why appeared first on Invezz.

You May Also Like


Mimiq, Inc is announcing today the launch of their new product, Mimiq Track, at CES as part of their latest product line to operate...


Bayerische Motoren Werke AG (ETR: BMW) shares have advanced more than 15% since the beginning of October 2022, and the current share price stands...

Editor's Pick

Real gross domestic product rose at a revised 3.2 percent annualized rate in the third quarter versus a 0.6 percent rate of decline in...

Editor's Pick

In Risky Business: Why Insurance Markets Fail and What to Do About It (Yale University Press, 2023), economists Liran Einav (Stanford), Amy Finkelstein (MIT),...

Disclaimer:, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2023