We recently compiled a list of the Jim Cramer Talked About These 11 Stocks Recently. In this article, we are going to take a look at where Delta Air Lines, Inc. (NYSE:DAL) stands against the other stocks Jim Cramer talked about recently.
Jim Cramer, the host of Mad Money, recently shared his thoughts on the surge in cruise stocks, offering a perspective that diverges from the usual focus on the tech sector. According to Cramer, the excitement over DeepSeek’s impact on technology has caused many to overlook simpler, more accessible opportunities. While questions about power plants, data centers, and the future of companies like Nvidia are complex, Cramer finds comfort in identifying opportunities that are easier to grasp. One such opportunity, he pointed out, is with the cruise line operators.
Cramer cited a comment from the CEO of a cruise operator who mentioned that the current macro environment favors experiences over material goods as spending on leisure and travel continues to rise and said:
“Hey, to me it means the cruise lines were cyclical stories before Covid, but now they’ve become genuine secular growth plays and they may stay that way for a generation.”
He emphasized that many investors are still struggling to accept the rapid growth of cruises in such a short time span, despite travel being a massive $2 trillion industry. Cruises, within that context, offer significant value, Cramer noted.
READ ALSO 7 Stocks on Jim Cramer’s Radar and Jim Cramer’s Game Plan: Top 14 Stocks to Watch
He also highlighted an important factor that has changed the cruise industry since the pandemic: many cruise companies have become far more disciplined in managing their capacity. Unlike before, when too many ships would flood the market, operators are now taking a more cautious approach, which has made the industry more resilient. This shift, according to Cramer, has strengthened the position of cruise lines moving forward. Despite this, he observed that travel and leisure stocks remain undervalued, as many analysts continue to doubt the staying power of the cruise industry.
While Cramer acknowledged that there are still underperforming companies in the market, including a struggling airline stock he pointed out, he firmly stated that he would prefer to own shares in the worst cruise line over the best airline.
Our Methodology
For this article, we compiled a list of 11 stocks that were discussed by Jim Cramer during the episode of Mad Money on January 28. We listed the stocks in the order that Cramer mentioned them. We also provided hedge fund sentiment for each stock as of the third quarter of 2024, which was taken from Insider Monkey’s database of 900 hedge funds.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
An aerial view of a commercial aircraft taking off from a coastal hub.
Delta Air Lines, Inc. (NYSE:DAL)
Number of Hedge Fund Holders: 57
Cramer has often called Delta Air Lines, Inc. (NYSE:DAL) “best of breed”. Here’s what he said about the company in the recent episode:
“Of course, not everything is rosy in travel. While I like Delta, United, and Alaska Airlines, ways to play travel, there’s still some laggard, haggard companies out there that can act like skunks at a profits party.”
In an episode that aired in January, talking about Delta (NYSE:DAL), a provider of scheduled air transportation, Cramer said:
“The airlines are a changed breed. They’re no longer building up capacity to meet… demand. Instead, they’re doing their best to keep capacity tight and prevent a ruinous price war. It’s still the right time to own Delta because the air traffic remains robust and profits are flowing like never before.”
Furthermore, over the next three to five years, Delta (NYSE:DAL) aims for mid-teens operating margins, 10% earnings per share growth, and free cash flow of $3 billion to $5 billion. For 2025, the company expects capacity growth of 3% to 4%, mid-single-digit revenue growth, and low single-digit increases in non-fuel unit costs.
Overall DAL ranks 8th on our list of the stocks Jim Cramer talked about recently. While we acknowledge the potential of DAL as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than DAL but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
