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 American Express Company (NYSE:AXP) 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).
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American Express Company (NYSE:AXP)
Number of Hedge Fund Holders: 62
Cramer highlighted American Express Company (NYSE:AXP), a financial services provider, as a strong stock, noting the skepticism about the sustainability of the travel boom, which AXP continues to disprove.
“Stepping back, I think the travel and leisure stocks remain undervalued because so many analysts keep thinking this story just can’t last. American Express, phenomenal stock, because people can’t think that travel can maintain this incredible pace yet all it does is accelerate.”
In October 2024, ahead of American Express’s (NYSE:AXP) Q3 earnings report, Cramer mentioned that during the last two times the stock dropped, he recommended buying it, and those calls proved to be accurate.
At that time, Cramer also highlighted the value of American Express’s (NYSE:AXP) conference calls, where the company provides detailed insights into consumer spending trends across generations, including Gen X and Gen Z. He noted that if the stock takes a hit, he would likely recommend it as a buy again, as his previous calls had been successful, and he planned to stick with his outlook.
Overall AXP ranks 5th on our list of the stocks Jim Cramer talked about recently. While we acknowledge the potential of AXP 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 AXP 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.
