This video is part of our "Motley Fool Conversations" series, in which industrials editor and analyst Brendan Byrnes and consumer goods editor and analyst Austin Smith discuss topics across the investing world.
Jim Cramer, the storied investor and host of Mad Money, makes many daily buy or sell recommendations on stocks. In today's edition, Brendan discusses one bearish call by Cramer that he disagrees with. Despite a slight decline in sales in February, the housing market has been showing steady improvement. Building permits, which are a more forward-looking indicator, reached the highest level since October 2008, and builders sentiment is at the highest level in almost five years. Brendan believes that the rebounding housing market will help drive KB Home even higher. The stock is still relatively cheap, despite being up over 65% in 2012, it's still down 13% over the past full year.
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