We have liked KB Home (KBH) for a while with its 55% - 60% exposure to the first time buyers, says Jay McCanless of Wedbush Securities. Wedbush has a price target of $56 and an outperform rating on KB Home. Wedbush also likes Lennar (LEN). He thinks if the price of lumber continues to drop, it will be a gross margin tailwind in the back half of the year.
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