The homebuilding sector is "ugly," but when a company like
goes up after reporting a bad number, "people must change their thinking about homebuilder stocks," Jim Cramer said on his
"RealMoney" radio show Tuesday.
It might be hard to stay positive when news is so negative with homebuilders slowing construction and places being overbuilt, but market players must think like "stocks guys" not "housing guys," he stressed.
Toll Brothers' stock increase is not "idle," Cramer said, "The housing group is in the process of bottoming."
"Homes are levered to employment, not supply and demand long-term," he continued. "If unemployment stays low and the rates stay low, we will work out the supply, and when the supply is worked off, the stocks will catch a rally."
Cramer said he would buy
and Toll Brothers as they pull back.
In addition, "
is about to break out of its range," because
, a "gigantic user" of
, canceled its order with Airbus and placed a larger order with Boeing, Cramer said.
"When other companies break ranks, I believe Boeing will be able to raise price," which will cause the company's gross margins and earnings to consequently go up, he said. "Go buy some Boeing."
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