We recently published a list of Jim Cramer Suggested Buying These 8 Stocks on Weakness. In this article, we are going to take a look at where Royal Caribbean Cruises Ltd. (NYSE:RCL) stands against other stocks that Jim Cramer suggested buying on weakness.
Jim Cramer, host of Mad Money, discussed the current state of business cycles last Wednesday, emphasizing how they were far from synchronized. He pointed out that different sectors were performing in contradictory ways, making it difficult for the Federal Reserve to determine its next move. While some industries are flourishing, others are struggling, and a few appear to be in serious decline.
READ ALSO Jim Cramer’s Game Plan: 17 Stocks in Focus and Jim Cramer Discussed These 11 Stocks Recently
Cramer said that the chaotic landscape created a curious backdrop for the Nasdaq and the S&P 500, which continued to reach new highs, even as challenges persisted beneath the surface. Cramer noted that many of the stocks in these major indices were performing particularly well at the moment.
“And that’s why it feels so weird that the Nasdaq and the S&P 500 keep bumping up to new highs and yet so much bad is happening underneath. So many of the stocks in these indices are simply not that hot, including even some of the Mag seven. But that could change on a dime.”
Cramer also warned that the market could shift dramatically if the president takes action, a move he has been known to make frequently, for better or worse. According to Cramer, such actions could completely disrupt entire business cycles. Despite the overall market uncertainty, Cramer identified one clear winner: the travel and leisure sector.
“The most insanely positive cycle out there is travel and leisure. This one’s mostly a holdout from the days of COVID when we discovered that we were long on money and short on time. I think the best of the bunch are all worth buying into weakness. The airlines are breathtaking. I’ve never seen anything like it.”
Our Methodology
For this article, we compiled a list of 8 stocks that were discussed by Jim Cramer during the episode of Mad Money aired on February 19. We listed the stocks in the order that Cramer mentioned them. We also provided hedge fund sentiment for each stock as of the fourth quarter of 2024, which was taken from Insider Monkey’s database of over 1,000 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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
Royal Caribbean Cruises Ltd. (NYSE:RCL)
Number of Hedge Fund Holders: 58
Discussing Royal Caribbean Cruises Ltd. (NYSE:RCL) during the episode, Cramer stated:
“We go to a cruise… a Disney cruise or buy the stock of Royal Caribbean, keeps beating the numbers and beating numbers and beating numbers. Again, the cruise lines haven’t been cyclical since Covid.”
Royal Caribbean (NYSE:RCL) operates various cruise services through its brands, including Royal Caribbean International, Celebrity Cruises, and Silversea Cruises, offering a diverse selection of itineraries. In October 2024, Cramer commented on how well the company is doing now that cruises are loved again and said:
“The cruise lines are as loved now as they were hated during COVID and the best performer of the group, as I say almost every night because you get a lot of questions about these, is Royal Caribbean, RCL. Cruises are a tremendous bargain, while hotel rooms, rates, and other forms of entertainment have just gotten to be too expensive. By the way, airline tickets, wow. There’s not a lot of new capacity coming on in the fleet business. They take forever to build these ships. Forever. Bookings are explosive. You can still buy the stock.”
Overall, RCL ranks 5th on our list of stocks that Jim Cramer suggested buying on weakness. While we acknowledge the potential of RCL 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 RCL but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap
Disclosure: None. This article is originally published at Insider Monkey.
