Must-See: Jim Cramer’s 10 Best Stock Picks for Investors Right Now

4. Lennar Corporation (NYSE:LEN)

Number of Hedge Fund Holders: 60

Jim Cramer mentioned that Lennar Corporation (NYSE:LEN), a well-known home builder, is set to report its earnings the day after the Federal Reserve’s meeting. This timing could provide valuable insights. Cramer believes Lennar Corporation (NYSE:LEN) will present a strong performance, and if the Fed announces a 50 basis point rate cut, Lennar’s stock might become an excellent investment opportunity.

“Lennar, a classic home builder, will report a day after the Fed meeting, which could be very enlightening. I think Lennar will tell a terrific story, and if we get a 50 basis point cut, its stock might be a terrific place to be.”

Lennar Corporation (NYSE:LEN) offers a strong bullish outlook based on its solid financial results and its ability to take advantage of current housing market conditions. In Q3 2024, Lennar Corporation (NYSE:LEN) outperformed expectations with earnings per share of $3.91, compared to the expected $3.52, and revenue of $8.73 billion, surpassing the forecasted $8.43 billion. This growth was driven by a 5% increase in home deliveries and healthy gross margins of 23.1%, highlighting Lennar Corporation (NYSE:LEN)’s ability to stay profitable even with rising interest rates.

Lennar Corporation (NYSE:LEN)’s focus on affordable housing, a key need in the U.S. due to a housing shortage, has positioned it well in the market, especially as higher mortgage rates push buyers toward lower-cost homes. Lennar Corporation (NYSE:LEN)’s success is also supported by its ability to manage costs and adjust to regional demand, thanks to its strategic geographic diversification.

Additionally, Lennar Corporation (NYSE:LEN)’s plan to spin off its multifamily unit and its ongoing share buyback program show management’s confidence in future growth and commitment to returning value to investors. Backed by a strong balance sheet and continued investment in land and communities, Lennar Corporation (NYSE:LEN) is set to benefit from ongoing housing demand, making it an attractive investment opportunity.