Jim Cramer: Lennar is a Star, KB Home Should Be Acquired

Jim Cramer says Lennar is a star in the home building space, but KB Home should be acquired by another company.

Author:: Jim Cramer
Publish date:: Jun 21, 2016 11:12 AM EDT

TheStreet's Action Alerts PLUS Portfolio Manager Jim Cramer says Lennar (LE) - Get Report is a start, but KB Home (KBH) - Get Report should be purchased by another company. Cramer said KB Home is very inexpensive and the reason to buy the stock is on takeover hopes. On Tuesday, after the markets close, KB Home is expected to report earnings of $0.14 a share on sales of $747 million for its most recent quarter. Shares of KB Home have added 18 percent since the start of the year. On Tuesday morning, rival homebuilder Lennar (LEN) - Get Report posted better than expected second quarter earnings on the top and bottom lines with a 15 percent year-over-year increase in sales.

At the time of publication, Jim Cramer's charitable trust Action Alerts PLUS held no positions in stocks mentioned.