Jim Cramer Suggested Buying These 8 Stocks on Weakness

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

Number of Hedge Fund Holders: 86

Highlighting the rebound in travel and leisure stocks like United Airlines Holdings, Inc. (NASDAQ:UAL), Cramer said:

“Old hands like me are used to seeing the airlines collapse once or twice a decade. Not anymore. You don’t need to think this went through. You just need… the obvious. You go, go buy United, it’s up 10% year-to-date.

I think it can challenge its old high of $116 given that people seem to want to travel no matter what. We’re well past the initial post covid boom here. I think it can absolutely justify paying eight times earnings for United.”

United Airlines Holdings, Inc. (NASDAQ:UAL) is a well-known airline company that provides both passenger and cargo transport services. Earlier in January, Cramer was full of praises for the company as he said:

“… Simply astounding, it’s United Airlines. For the first time in my life, I’ve seen a trade morph into an investment and that’s what United did. The stock’s up 135%… once the airline started removing capacity. United cut back 3% of its promised midyear capacity, I couldn’t believe it. Of course, I can’t explain the whole run.

Problem with Boeing, the production there kept some airlines from being, they were capacity constraints. They couldn’t get the planes they needed. Plus, the long on money short on time thesis that burst on the scene post-Covid never really quit. Oh, and get this, United still sells for less than eight times this year’s earnings. It can actually power higher. It might be a good buy. I would wait for a 5 to 8% pullback.”

While we acknowledge the potential of United Airlines Holdings, Inc. (NASDAQ:UAL) 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 UAL but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.

Disclosure: None. This article was originally published at Insider Monkey.