Lennar Corporation (LEN): Jim Cramer Spots Opportunity – Will Falling Rates Boost Lennar?

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05-04-2025

We recently published a list of . In this article, we are going to take a look at where Lennar Corporation (NYSE:LEN) stands against other stocks that Jim Cramer discusses.
In his appearance on CNBC's Squawk on the Street on Thursday, the day after President Trump unveiled his tariffs to reset America's trade policies, Jim Cramer shared what will follow the tariffs. According to Cramer, the tariffs are just the first piece of the President's economic strategy. He commented:
'I think that next is the tax cut that we get because there will be a lot of revenue because as David said they can't move. No, look, when the mills come back, they're made up of robots. That's just the way it is.'
As to what consumers should do before the tariffs hit, Cramer believes that 'You buy an iPhone. Yes. And you buy a car,' as these products are likely to see the steepest price increases once the rules make their way into supply chains.
The CNBC host also commented on what might happen to the auto industry as tariffs potentially raise prices and affect demand. According to Cramer:
'Well Q2 it depends on where we are in terms of the drop off. But autos, you know, you gotta buy a car now. I mean, it's a great time to buy a car. Used car prices will spike.'
He also shared his thoughts on whether Deutsche was right about the tariff rollout and calculations presenting a larger risk about decision-making in the Trump administration 'Well no, it's just they don't want you to, they want you to come back here as they just made it so that wherever you go, it's bad,' said Cramer.
As to whether the tariffs are a negotiating strategy employed by the President to secure favorable trading terms, Cramer doesn't believe so. 'There's no negotiations. You just, this is it. . . it's not a negotiation,' he believes.
According to Cramer, firms that shifted manufacturing to Vietnam, he pointed out that businesses that shifted supply chains were proven wrong. 'And I gotta tell you, that's turned out to be the one that people thought if we go to Vietnam we're safe. And it was just dead wrong,' he said.
Cramer also commented on whether Chinese companies putting factories in Mexico might let them evade tariffs. As he believes that the new rules are quite airtight, this won't be the case according to him:
'No, they're getting away with it right now. I don't think they're gonna get away with. Mexican parts is a really big flashpoint for the American companies and they don't know the answer. Even the top people don't know the answer about the Mexican parts. And how it's gonna play out.'
To make our list of the stocks that Jim Cramer talked about, we listed down the stocks he mentioned during CNBC's Squawk on the Street aired on April 3rd.
For these stocks, we also mentioned the number of hedge fund investors. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points ().
A construction crew installing roof tiles on a newly built row home.
Number of Hedge Fund Holders In Q4 2024: 70
Lennar Corporation (NYSE:LEN) is a homebuilding company whose shares are down by 8.6% year-to-date. The stock has struggled as the firm has warned about weak housing demand amidst high interest rates. Cramer has discussed the shares in detail in his previous appearances. He has pointed out that dropping home prices is not the 'end of the world' for Lennar Corporation (NYSE:LEN) but added that the shares could drop further if the Fed continues to hold interest rates. Here are his latest thoughts:
'I mean, do you buy the homebuilders. They do well, rates are coming down. Mortgage rates are coming down pretty severely. How about buying Lennar? It's all the way down. It's levered to mortgage rates. . .so maybe you buy Lennar, maybe you buy Toll Brothers.'
Overall, LEN ranks 5th on our list of stocks that Jim Cramer discusses. While we acknowledge the potential of LEN, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than LEN but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.