Jim Cramer Talked About These 11 Stocks 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.

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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.

Jim Cramer Talked About These 11 Stocks Recently

Jim Cramer Talked About These 11 Stocks Recently

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).

Jim Cramer Talked About These 11 Stocks Recently

11. JetBlue Airways Corporation (NASDAQ:JBLU)

Number of Hedge Fund Holders: 28

Cramer highlighted JetBlue Airways Corporation’s (NASDAQ:JBLU) disappointing earnings led to a decline in its stock recently as he said:

“There’s still some laggard, haggard companies out there that can act like skunks at a profits party. That’s what JetBlue was today with its terrible earnings and outlook that caused that stock to lose over 25% of its value in a single session. Still, one more reason why I always like to say I’d rather own shares in the worst cruise line than the best airline.”

JetBlue (NASDAQ:JBLU) offers air travel services. In 2024, as mentioned in our article, Jim Cramer’s Exclusive List: 10 Stocks You Should Keep an Eye On, Cramer expressed his thoughts about the company as he said:

“Here’s my feeling on JetBlue Airways Corporation and on airlines. I haven’t bought an airline stock, other than for my father, since 1984, and it was an immediate mistake. I learned my lesson: don’t touch the airlines. There are a lot of better stocks out there; you don’t need to be in airlines.”

10. Alaska Air Group, Inc. (NYSE:ALK)

Number of Hedge Fund Holders: 28

Cramer mentioned Alaska Airlines, a subsidiary of Alaska Air Group, Inc. (NYSE:ALK), as he said:

“Of course, not everything is rosy in travel. While I like Delta, United, and Alaska Airlines, ways to play travel, there’s still some laggard, haggard companies out there that can act like skunks at a profits party.”

Alaska Air (NYSE:ALK) runs airline services, providing scheduled air travel for both passengers and cargo using Boeing jet aircraft. It has subsidiaries, including Alaska Airlines, Hawaiian Holdings, Inc., Horizon Air, and McGee Air Services. The company had a successful end to 2024, posting record revenues of $11.7 billion. The year marked a significant shift for the company as it integrated Hawaiian Airlines into its operations, kicking off a plan aimed at generating an additional $1 billion in pretax profit over the next three years.

The full-year net income for 2024, excluding special items and other adjustments, was $625 million, or $4.87 per share, an increase compared to 2023, when net income, also excluding special items, stood at $583 million, or $4.53 per share. Additionally, Alaska Air (NYSE:ALK) generated $1.5 billion in operating cash flow for the full year, signaling strong financial health and growth.

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

Number of Hedge Fund Holders: 54

United Airlines Holdings, Inc. (NASDAQ:UAL) is a major airline offering air travel services for both passengers and cargo. Cramer mentioned that he liked the company and said:

“Of course, not everything is rosy in travel. While I like Delta, United, and Alaska Airlines, ways to play travel, there’s still some laggard, haggard companies out there that can act like skunks at a profits party.”

Patient Capital Management stated the following regarding United Airlines Holdings, Inc. (NASDAQ:UAL) in its Q4 2024 investor letter:

“United Airlines Holdings, Inc. (NASDAQ:UAL) had a strong fourth quarter, gaining 70.2% in the period. The company benefitted from continued strong demand that surprised the market as well as the initiation of a buyback program, the first since COVID. There continues to be strong travel demand from both retail and business travelers. According to the International Air Transport Association (IATA), global air passenger travel is still below the pre-COVID implied trend path despite reaching a new all-time high this year. United’s focus on the customer over the last few years has led to strong improvement in net promoter scores (NPS) which should continue to flow through the model via better TRASM (total revenue per available seat mile) and higher cash flows and earnings. As of today, United alone accounts for ~30% of the overall industry’s profits. We expect this market share to grow and be defensible as we transition to an environment where customer service becomes the differentiating factor, and scale provides unparalleled ability to reinvest in the customer experience.”

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

Number of Hedge Fund Holders: 57

Cramer has often called Delta Air Lines, Inc. (NYSE:DAL) “best of breed”. Here’s what he said about the company in the recent episode:

“Of course, not everything is rosy in travel. While I like Delta, United, and Alaska Airlines, ways to play travel, there’s still some laggard, haggard companies out there that can act like skunks at a profits party.”

In an episode that aired in January, talking about Delta (NYSE:DAL), a provider of scheduled air transportation, Cramer said:

“The airlines are a changed breed. They’re no longer building up capacity to meet… demand. Instead, they’re doing their best to keep capacity tight and prevent a ruinous price war. It’s still the right time to own Delta because the air traffic remains robust and profits are flowing like never before.”

Furthermore, over the next three to five years, Delta (NYSE:DAL) aims for mid-teens operating margins, 10% earnings per share growth, and free cash flow of $3 billion to $5 billion. For 2025, the company expects capacity growth of 3% to 4%, mid-single-digit revenue growth, and low single-digit increases in non-fuel unit costs.

7. The Boeing Company (NYSE:BA)

Number of Hedge Fund Holders: 52

Cramer recommended starting to buy The Boeing Company (NYSE:BA), as he believes the company is just one quarter away from a significant earnings breakout.

“Want go one step further? It may be a good reason to start buying some Boeing because it’s now only one quarter away from a big earnings breakout. I don’t think most money managers are gonna wait for that to happen. They want it ahead of time.”

Boeing (NYSE:BA) is a major player in aerospace, involved in the design, development, manufacturing, and sales of various products, such as commercial jetliners, military aircraft, satellites, missile defense systems, and space flight programs. After the company reported a loss in its Q3 2024 earnings result, Cramer said:

“The worse Boeing’s financials might be, the better the buy, because as soon as this machinists strike is over and Boeing raises some money, it’ll be back on the road to profitability. Do not get me wrong, this company is in awful shape but only two companies on earth can make commercial aircraft at scale and Boeing is one of them. The demand for planes is off the charts, so they’ll be fine once they raise the cash.”

6. Marriott International, Inc. (NASDAQ:MAR)

Number of Hedge Fund Holders: 60

Marriott International, Inc. (NASDAQ:MAR) operates and franchises hotels, residences, timeshares, and yachts worldwide under various well-known brands. Talking about the company, Cramer remarked:

“Stepping back, I think the travel and leisure stocks remain undervalued because so many analysts keep thinking this story just can’t last… Same reason why Marriott stock keeps climbing.”

On January 28, Marriott (NASDAQ:MAR) reported impressive global growth for 2024, marking a significant achievement with a record 123,000 new rooms added, resulting in a net room growth of 6.8% for the year. As of the end of 2024, the company had more than 577,000 rooms in its development pipeline, setting the stage for continued expansion in the years ahead.

By year’s end, the company had expanded its reach to over 9,300 properties, spanning 144 countries and territories. In its largest market, the U.S. and Canada, Marriott’s (NASDAQ:MAR) portfolio had surpassed 1 million open rooms, distributed across 6,307 properties. Additionally, nearly 263,000 rooms, spread across 2,161 properties, were in the development pipeline in this region alone.

5. 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.

4. Carnival Corporation & plc (NYSE:CCL)

Number of Hedge Fund Holders: 54

Carnival Corporation & plc (NYSE:CCL) is a leading global provider of leisure travel services, known for its wide range of cruise brands. Cramer mentioned the company and said:

“Plus, the cruise companies like Royal Caribbean, Norwegian, and Carnival have become incredibly disciplined about not adding too much capacity at once, which makes the industry much more resilient than it was before Covid whipped them in shape. They used to have too many ships coming online all the time.”

In December 2024, as part of his game plan, Cramer highlighted Carnival (NYSE:CCL) and said:

“We also get numbers from Carnival. Now Carnival is, this is a cruise line. This has got to be the most bullish industry in the S&P 500 at this moment. Cruises remain the most popular form of travel and leisure activities post-Covid. They’re a great bargain. I think the estimates will be beaten. Right now, you can throw darts at this group and make money. I just booked myself a cruise for next year. Nothing lasts forever, but the love for this group currently knows no bounds.”

3. Norwegian Cruise Line Holdings Ltd. (NYSE:NCLH)

Number of Hedge Fund Holders: 33

Norwegian Cruise Line Holdings Ltd. (NYSE:NCLH) is a global cruise company that operates under the brands Norwegian Cruise Line, Oceania Cruises, and Regent Seven Seas Cruises. Discussing the company, Cramer said:

“Plus, the cruise companies like Royal Caribbean, Norwegian, and Carnival have become incredibly disciplined about not adding too much capacity at once, which makes the industry much more resilient than it was before Covid whipped them in shape. They used to have too many ships coming online all the time.”

Cramer discussed Norwegian Cruise (NYSE:NCLH) during CNBC’s Mad Dash in May 2024 and mentioned that the company shared a compelling story about its success while it appeared on Mad Money, noting that bookings are full. Cramer highlighted that initially, the stock had not caught much attention, but then, firms like Melius and Mizuho upgraded it, with Mizuho urging investors to buy Norwegian Cruise.

Cramer pointed out that it’s remarkable how people have seemingly forgotten that the cruise industry was at the epicenter of COVID, and now, the value of cruising is finally resonating with the public. He added:

“They still have a huge amount of debt, and you would say, listen, there’s too many turns, they need to pay a lot down, and I would say Norwegian Cruise has a payment this year that they have no problem making, and this one is the cheapest one relative to debt.

So it is an exciting company, because they have this, you know, they go worldwide, it’s not Norwegian… Norwegian’s got this management that is telling a great story without the stock moving yet. … I think that Norwegian’s a very good call.”

2. The Walt Disney Company (NYSE:DIS)

Number of Hedge Fund Holders: 76

Cramer mentioned The Walt Disney Company (NYSE:DIS) during the episode. Here’s what  Mad Money’s host had to say:

“Travel’s a $2 trillion business. Cruises are considered an amazing value within that $2 trillion. No wonder Disney’s planning to double its fleet size in the next six years.”

Disney (NYSE:DIS) plays a major role in the global entertainment sector, with its operations spanning film and television production, streaming platforms, and theme park management. In December 2024, Cramer discussed Jefferies’ initiation of coverage of the stock with a Hold rating. He pointed out that the company had announced a 33% increase in its dividend, reflecting a highly successful year.

However, Cramer found it interesting, or perhaps even a bit insulting, as he noted, “they say there’s $120 sum of the parts”, despite the stock trading at $116 at that time. He called the $120 price target “ridiculous,” stating that he believes Disney (NYSE:DIS) is worth much more.

Cramer went on to highlight that the company is a major player in the entertainment world, with a movie lineup that’s on track, stabilized linear TV operations, and theme parks positioned for growth next year following a reset. Given the company’s positive outlook and solid fundamentals, he questioned why anyone would bet against Disney, criticizing the $120 target as a bet against the company’s potential.

1. Royal Caribbean Cruises Ltd. (NYSE:RCL)

Number of Hedge Fund Holders: 52

Cramer pointed out that Royal Caribbean Cruises Ltd.’s (NYSE:RCL) stock jumped 12% on January 28. When pondering the reason behind the surge, Cramer explained that the company had not only reported a significant earnings surprise but also saw a remarkable rise in the revenue generated per available cruise day. He added:

“How about this gem? ‘Momentum continues in 2025 with bookings accelerating since the last earnings call resulting in the best five booking weeks in the company’s history.’ Oh, and you want some excitement that got the analysts totally jazzed? In 2027, Royal Caribbean will be introducing river cruising with 10 new ships to take advantage of a fractured market. It’s double-digit growth over the last decade.”

Cramer noted that Royal Caribbean (NYSE:RCL) has a strong reputation, making it easier to imagine the company gaining more market share. This growth potential has led analysts to revise their estimates, not just for the immediate future, but for the coming years as well. Cramer also pointed out an interesting trend with Royal Caribbean and other cruise lines, they are so skilled at what they do that analysts often struggle to keep up with their actual earnings power. As a result, the companies consistently report better-than-expected numbers, which leads to significant rallies in their stock prices. He then said:

“Maybe Wall Street keeps getting taken by surprise because, let’s face it, this industry is full of snobs who don’t understand the appeal of going on a cruise. In fact, they probably wouldn’t be caught dead on one, which is why they can’t get their heads around these stocks. So what’s the appeal? As Jason Liberty, Royal Caribbean’s… CEO laid out in the conference call, ‘Consumers place significant value on visiting multiple destinations and this is even more important to millennial and Gen Z consumers.’ Meanwhile, the macro environment, Liberty says, favors experiences over things as leisure and travel spend continues to grow.”

Cramer highlighted that cruise lines like Royal Caribbean (NYSE:RCL) have become more disciplined in managing their fleet growth after the lessons learned during the pandemic. He noted that in the past, companies frequently added new ships without enough caution, but now the industry is more resilient due to its more careful approach to capacity expansion.

While we acknowledge the potential of Royal Caribbean Cruises Ltd. (NYSE: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 was originally published at Insider Monkey.