Jim Cramer Nailed These 11 Stock Picks

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

Number of Hedge Fund Holders: 58

Royal Caribbean Cruises Ltd. (NYSE:RCL), one of the world’s largest cruise operators, saw renewed investor interest as travel demand surged post-pandemic. Cramer was quick to highlight its market leadership and stock momentum last year.

“Royal Caribbean has been a real horse; the cruise line has outshined all of its competitors, rallying from below $80 last October to $138 yesterday, but today it was down five points. […] I think people are just looking for an excuse to ring the register on what’s become a very strong stock.”

Since then, Royal Caribbean stock has climbed another 44%, making it one of the standout performers in consumer discretionary.

However, Jim Cramer has recently addressed the slight turbulence that the cruise industry is experiencing and used the company’s CEO bullish outlook as a way to rationalize the recent dip in Royal Caribbean Cruises Ltd (NYSE:RCL)’s stock price. Here’s what he said on March 12:

“When he came on the show last week, first, Liberty confirmed that its… consumers perceive Royal Caribbean cruises as a better value than a land-based vacation, reinforcing my view the cruise lines can still do fine even in a softer economy. Second, he cited its own bookings and on-ship spending data from recent voyages, saying matter-of-factly, ‘that cash register continues to ring and be consistent.’

Finally, looking at longer term, Liberty noted that, this is so important, understand this major, major ratio, the new supply, meaning new cruise ships, should continue to be limited for the next few years, which is positive for the entire industry’s pricing power. At one point you see the pricing power go down when they have a lot of ships coming. Plus, altogether, I feel really okay about the cruise lines, Royal Caribbean in particular. This had a 25% pullback from its recent high, stock now sells for a very… undermining 14 times earnings. I like that.”