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Jim Cramer's Stop Trading! House-Proud

Stock quotes in this article: KBH , TOL , CHK  

Resilient homebuilding stocks are predicting the next boom, Jim Cramer said Monday on CNBC's Stop Trading! segment.

A recent bounce in shares of Toll Brothers (TOL Quote) and other residential real estate plays shows that a bottom has formed in the group, Cramer said. He said the group's prospects are starting to brighten now that everyone on Wall Street is bearish, which Cramer called a bit of a "pack mentality."

"Analysts have given up," he said. But after KB Home (KBH Quote) reports quarterly numbers Friday, investors can take advantage of analysts' negativity by buying the stock. KB's results, Cramer predicted, "won't be so bad" -- or at least not as bad as Wall Street will claim. ...

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