Jim Cramer on These 7 Travel and Leisure Stocks

1. Delta Air Lines, Inc. (NYSE:DAL)

Number of Hedge Fund Holders: 84

Delta Air Lines, Inc. (NYSE:DAL) was mentioned during the episode, and here’s what Cramer had to say:

“Now for those of you who haven’t been paying attention, this week Delta Airlines slashed its first-quarter earnings outlook, citing, ‘the recent reduction in consumer and corporate confidence caused by increased macro uncertainty’, which they say drove ‘softness and domestic demand’ in recent weeks. Now for a long time, Delta was the best of the airlines so you really don’t want to hear that kind of commentary from them. Now these guys cut their guidance ahead of an appearance at the JPMorgan Industrials conference on Tuesday.”

Cramer highlighted that many airline stocks have dropped by 35 to 40% in recent weeks, making them intriguing investment opportunities. Despite the sharp decline, Cramer believed the overall news about the industry isn’t as bad as it may seem. He added:

“Let’s start with Delta, which kicked things off with this guidance cut. Monday night, Delta CEO Ed Bastian spoke with CNBC’s Phil LeBeau on Closing Bell that night and explained that the domestic, corporate, and consumer spending ‘started to stall’ in February, mostly due to lower consumer confidence. But he also said he believes this weakness is transitory… Bastian is pretty confident we’re not headed for a real recession.

Delta cut the revenue growth forecast from 8% to 4%… It is not great but in a recession, they, they’d be down double digits. Bastian also noted that some of the weakness came after a couple of high-profile air safety instances.”

Delta Air Lines, Inc. (NYSE:DAL) is an airline that provides passenger and cargo services across a broad range of domestic and international routes.

While we acknowledge the potential of Delta Air Lines, Inc. (NYSE: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 time frame. 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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