Jim Cramer on These 7 Travel and Leisure Stocks

3.  Southwest Airlines Co. (NYSE:LUV)

Number of Hedge Fund Holders: 34

Cramer highlighted Southwest Airlines Co. (NYSE:LUV) rallied despite cutting its forecast as he stated:

“Southwest cut its revenue per available seat mile forecast… But honestly, these names have already come down dramatically over the past few weeks. This makes them very interesting to me. After this week’s blood bath, you got a lot of them are down 35 to 40%. So given all the newfound negativity, why on earth would I stick my neck out and recommend some cheap travel plays?

Look, as tough as these airlines, the updates were, the collective news, frankly, it wasn’t that horrible, at least not if you listen closely… Southwest actually rallied after giving soft revenue per available seat mile forecast, though that was likely due to some other announcements, including an end of the blanket bags fly-free policy. These guys have gotten real religion on trying to make money.”

Southwest Airlines (NYSE:LUV) is an airline based in the U.S., providing scheduled air travel services within the United States and to a few nearby international destinations.