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LGI Homes (LGIH) stock fell 2.8% after competitor Lennar's weak earnings and soft outlook signaled a broader downturn in the housing market.
On December 16, Jim Cramer identified Lennar as his second-favorite homebuilder after Toll Brothers, stating its potential as a 'buy' is contingent on the Federal Reserve pursuing interest rate cuts.
Toll Brothers reported mixed Q4 earnings, missing profit expectations but beating on revenue. The company's stock fell after it issued a cautious forecast for 2026 home deliveries, signaling persistent weakness in the luxury housing market.