Jim Cramer and Analysts Like These 10 Stocks

7.  Royal Caribbean Cruises Ltd. (NYSE:RCL)

Average Price Target Upside: 37.33%

Number of Hedge Fund Holders: 58

After Royal Caribbean Cruises Ltd. (NYSE:RCL) reported its earnings in January, Cramer was bullish on it and he commented:

“Take the stock of Royal Caribbean, which soared 12% today. What did they do this time? Well, they reported a huge upside surprise, but the spectacular increase in the revenue they generate per available cruise day. How about this gem? ‘Momentum continues in 2025 with bookings accelerating since the last earnings call resulting in the best five booking weeks in the company’s history.’ Oh, and you want some excitement that got the analysts totally jazzed? In 2027, Royal Caribbean will be introducing river cruising with 10 new ships to take advantage of a fractured market.”

Cramer highlighted Royal Caribbean’s (NYSE:RCL) consistent double-digit growth over the past decade, noting its strong reputation and ability to capture market share. He pointed out that analysts often underestimate the company’s earnings potential, leading to a pattern of better-than-expected results and significant stock rallies. This ongoing trend reflects Royal Caribbean’s success and its position in the market. He added:

“Maybe Wall Street keeps getting taken by surprise because, let’s face it, this industry is full of snobs who don’t understand the appeal of going on a cruise. In fact, they probably wouldn’t be caught dead on one, which is why they can’t get their heads around these stocks. So what’s the appeal? As Jason Liberty, Royal Caribbean’s… CEO laid out in the conference call, ‘Consumers place significant value on visiting multiple destinations and this is even more important to millennial and Gen Z consumers.’ Meanwhile, the macro environment, Liberty says favors experiences over things as leisure and travel spend continue to grow.”

Royal Caribbean (NYSE:RCL) is an international cruise operator, managing well-known brands such as Royal Caribbean International, Celebrity Cruises, and Silversea Cruises. On March 5, Loop Capital upgraded RCL stock to Buy from Hold and maintained a price target of $250. In a research note, the analyst pointed out that the outlook provided during the company’s analyst day exceeded expectations.

The firm encouraged investors to take advantage of the recent stock pullback, noting that shares have dropped nearly 15% since its initiation last month. Loop Capital expressed a positive view on the entire cruise industry, highlighting that Royal Caribbean (NYSE:RCL) has been a leader in financial performance since the pandemic. While the stock is now trading closer to its historical valuation, the firm believes there is still potential for growth, citing expectations of over 20% annual earnings despite tough comparisons.