Jim Cramer on These 7 Travel and Leisure Stocks

4. United Airlines Holdings, Inc. (NASDAQ:UAL)

Number of Hedge Fund Holders: 86

Talking about United Airlines Holdings, Inc. (NASDAQ:UAL), he said, “United said it expects its numbers to come in at the lower end of its guidance. As a result, the airline stocks were eviscerated on Tuesday.” However, Cramer pointed out that airline stocks have experienced a significant drop of 35 to 40% in recent weeks, which he views as potentially attractive for investors. Even with the steep decline, Cramer felt that the news surrounding the industry is not as negative as it appears at first glance. He went on to say:

“United stock was only down 2% yesterday after they said they’re gonna hit the lower end of the guidance… I like United, which I think has supplanted Delta as the best-run airline out there. United CEO Scott Kirby still sounded very confident in the company’s outlook at the JPMorgan conference yesterday. He said it continued strength in many parts of the business away from the weaker low-end domestic leisure market in government travel…

They also spent plenty of time explaining how they’ve pulled away from the industry in many respects when it comes to efficiency. With the stock down almost 38% from its January highs, now trading at less than six times this year’s earnings estimates, give me some. Amazing buying opportunity.”