Jim Cramer’s Bold Predictions About These 10 Industrial Stocks

6. Southwest Airlines Co. (NYSE:LUV)

Number of Hedge Fund Holders In Q3 2024: 36

Date of Cramer’s Comments: 8-15-24

Performance Since Then: 28.26%

Southwest Airlines Co. (NYSE:LUV) is one of the biggest airlines in the US due to the 817 aircraft in its fleet. The firm’s narrative in 2024 has been driven by its strategy to grow revenue from existing passengers, increase fleet utilization through redeye flights, launch vacation packages, and develop partnerships with international airlines. Higher fleet utilization is essential for Southwest Airlines Co. (NYSE:LUV) to succeed since the firm has been hit heavily by Boeing’s delayed aircraft deliveries. However, the second half of the year has been kind to the stock. Southwest Airlines Co. (NYSE:LUV)’s shares with multiple catalysts such as the settlement of a lawsuit from an activist investor and the closure of an AA investigation driving the shares. Here’s what Cramer said about Southwest Airlines Co. (NYSE:LUV) in August:

“We saw the potential directors from the activist investor Elliott; they want to bring in people to replace ten on the board. Everything would change if they do that. Every one of Elliott’s nominees excels in the fields Southwest needs—technology, revenue management, safety, government. On the other hand, if left to its own devices, I bet Southwest would keep it lower. There’s still time for the board to accept their lack of diligence and move on with their heads high, but I am definitely betting on Elliott here because his people are better, and they will get a better CEO. Valuable franchises it is hard to destroy no matter how hard you try. You just need the right team, and it’s a winner. You need a change agent as CEO, not just as director. In the case of Southwest, maybe you do need to change up the whole board.”