At first glance, February's 8.7-percent drop in housing starts looks "truly pathetic," but it actually represents a "natural decline," according to CNBC's Jim Cramer.
Homebuilder KB Home (NYSE: KBH) reported "very good" numbers in its Tuesday earnings report, and management followed up with encouraging guidance for the spring selling season, Cramer said during his "Mad Money" show Tuesday.
Coupled with the decrease on 10-year Treasury yields, investors should be able to profit from the housing industry, which is poised to enjoy its "annual spring rebound," the CNBC host said.
One of the more direct plays on housing is KB Home, whose stock remains "incredibly cheap" on a P/E basis, Cramer said.
Why It's Important
Investors who sold off the weak data should "maybe get their head checked," as the sector is approaching the outdoor season, or "Christmas time for these companies," Cramer said.
Investors shouldn't be afraid of the "hideous housing numbers," and intelligent investors buying on recent weakness should see a profit, Cramer said.
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