This company is a juggernaut, TheStreet's Jim Cramer said on CNBC's "Stop Trading" segment. It continues to crush the bears that think selling it short is a good idea.
To frame just how brutal it's been for short-sellers, KB Home stock is up 134% over the past 12 months and is already up almost 20% so far this year. So, it's no surprise that KB Home is hitting a new 52-week high on Thursday as well.
While the results were promising, it's the comments from KB Home's management on the conference call that got Cramer excited. They said the economy is growing, the labor market is healthy and consumer confidence is high. "That's the key," Cramer said.
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When consumers are working and feel confident about their job and about the economy, they want to buy things and they want to own homes, he reasoned. Tax reform is also helping matters, said Cramer, who also manages the Action Alerts PLUS charitable trust portfolio.
As long as the economy keeps up, demand for housing should, too. Homebuilders have land, and they want to develop, Cramer concluded.
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At the time of publication, Cramer's Action Alerts PLUS had no position in any security mentioned.