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RealMoney Radio: Sears in the House

Cramer says that home-related stocks are the way to play a housing comeback.

"The stock market predicts things six months in advance, and analysts don't get that," said Jim Cramer on his

"RealMoney" radio show Tuesday. This includes homebuilding.

When stocks go down but fundamentals are good, analysts reiterate their buy ratings. But after a while, they often give up and go negative, Cramer said.

Eventually there are no sellers left and no analysts to cheerlead -- like in real estate, he added.

In homebuilding, Cramer recommends

Toll Brothers

(TOL) - Get Toll Brothers, Inc. Report



(LEN) - Get Lennar Corporation Class A Report


KB Homes

(KBH) - Get KB Home Report

, which trades at an "incredible" five times earnings.

"Lennar is for me," Cramer said.

Cramer also said he likes companies that are related to housing, such as

TheStreet Recommends

American Standard


, the maker of toilets and air conditioners,

Black & Decker


, a maker of home appliances, and cabinet company

Fortune Brands



Cramer also likes industrial and construction equipment company

Ingersoll Rand

(IR) - Get Ingersoll-Rand Plc (IR) Report

, which he owns for his charitable trust,

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But the best play among home-related stocks is

Sears Holdings


, trading at a 52-week high of about $169 today, Cramer said. "What you need is a so-so housing play that does well when people want to fix up their homes."

Cramer also holds Sears for his charitable trust,

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To see the most recent edition of The RealMoney Radio Recap in its entirety, please click here. This recap is published every day around 3 p.m. ET.

At the time of publication, Cramer was long Ingersoll Rand and Sears Holdings.

Jim Cramer is a director and co-founder of He contributes daily market commentary for's sites and serves as an adviser to the company's CEO. Outside contributing columnists for and, including Cramer, may, from time to time, write about stocks in which they have a position. In such cases, appropriate disclosure is made. To see his personal portfolio and find out what trades Cramer will make before he makes them, sign up for

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