We recently compiled a list of the Jim Cramer’s Latest Game Plan: 20 Stocks to Watch. In this article, we are going to take a look at where Royal Caribbean Cruises Ltd. (NYSE:RCL) stands against the other stocks featured in Jim Cramer’s latest game plan.
Jim Cramer, the host of Mad Money, recently advised investors to maintain composure as major companies release their earnings this week. Additionally, he highlighted the significance of the upcoming nonfarm payroll report, set to be released on Friday, which he believes will have considerable implications for interest rates.
He said that weak hiring figures could prompt the Federal Reserve to continue cutting rates. Last Friday, Cramer noted a mixed performance in the markets: the Dow dropped by 260 points, the S&P fell slightly by 0.03%, while the Nasdaq managed a gain of 0.56%. Cramer characterized the current market conditions as a preparatory phase for an eventful week ahead, urging viewers to pay close attention.
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Cramer emphasized the importance of the employment data released on the first Friday of the month, particularly in light of the forthcoming Fed meeting.
“Speaking of employment, on the first Friday of the month, we get the nonfarm payroll report. I can’t stress how important this number is. We have an upcoming Fed meeting and we’re now seeing [that] cyclicals really missed their numbers because of higher interest rates. A lot of them are rolling over. But if employment stays as strong as it’s been, then we’re going to hear that there will be no November rate cut.”
Throughout his commentary, Cramer conveyed a clear message: while it may be tempting to sell, this period aligns with a cycle of Fed rate cuts, suggesting that buying could be the more prudent strategy. He reminded viewers that this week feels charged with significance, likening it to a playoff atmosphere where the stakes are exceptionally high.
In his concluding remarks, Cramer said:
“Bottom line, huge week, huge opportunity. Just please remember, the first move’s been the wrong move, I’d say probably maybe, almost half the time since this earnings season began. Wait to process the numbers, listen to the conference call before you pull the trigger.”
Our Methodology
For this article, we compiled a list of 20 stocks that were discussed by Jim Cramer during his episode of Mad Money on October 25. We listed the stocks in ascending order of their hedge fund sentiment as of the second quarter, which was taken from Insider Monkey’s database of more than 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).
An aerial view of a luxurious cruise ship, surrounded by the blue horizon.
Royal Caribbean Cruises Ltd. (NYSE:RCL)
Number of Hedge Fund Holders: 48
While highlighting that cruise stocks like Royal Caribbean Cruises Ltd. (NYSE:RCL) have been performing well, he also said that RCL’s stock is hot, in addition to his other two hot stocks.
“The cruise stocks… they’ve probably been the strongest, most reliable names in the entire, entire consumer space. Royal Caribbean is the number one.”
Royal Caribbean (NYSE:RCL) is a global cruise operator, overseeing popular brands like Royal Caribbean International, Celebrity Cruises, and Silversea Cruises. For its second quarter, the company reported another “beat and raise” performance, leading to an increase in its full-year projections. For the third quarter, adjusted EPS is expected to be between $4.90 and $5.
Due to strong demand for vacation offerings, Royal Caribbean (NYSE:RCL) raised its 2024 adjusted EPS guidance to a range of $11.35 to $11.45. This marks a significant growth of 68% compared to the previous year. The company’s 2024 booking position is solid across all products and markets.
It continues to exceed last year’s figures in both rate and volume. Additionally, the Caribbean represents about 55% of its capacity for the year and 42% for the third quarter. This segment is booked ahead in both rate and volume. The strong yield growth is driven by new ships and higher prices on existing vessels, supported by private destinations.
Overall RCL ranks 18th on the list of stocks featured in Jim Cramer’s latest game plan. 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.
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Disclosure: None. This article is originally published at Insider Monkey.