We recently published a list of Jim Cramer Suggested Buying These 8 Stocks on Weakness. In this article, we are going to take a look at where Marriott International, Inc. (NASDAQ:MAR) stands against other stocks that Jim Cramer suggested buying on weakness.
Jim Cramer, host of Mad Money, discussed the current state of business cycles last Wednesday, emphasizing how they were far from synchronized. He pointed out that different sectors were performing in contradictory ways, making it difficult for the Federal Reserve to determine its next move. While some industries are flourishing, others are struggling, and a few appear to be in serious decline.
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Cramer said that the chaotic landscape created a curious backdrop for the Nasdaq and the S&P 500, which continued to reach new highs, even as challenges persisted beneath the surface. Cramer noted that many of the stocks in these major indices were performing particularly well at the moment.
“And that’s why it feels so weird that the Nasdaq and the S&P 500 keep bumping up to new highs and yet so much bad is happening underneath. So many of the stocks in these indices are simply not that hot, including even some of the Mag seven. But that could change on a dime.”
Cramer also warned that the market could shift dramatically if the president takes action, a move he has been known to make frequently, for better or worse. According to Cramer, such actions could completely disrupt entire business cycles. Despite the overall market uncertainty, Cramer identified one clear winner: the travel and leisure sector.
“The most insanely positive cycle out there is travel and leisure. This one’s mostly a holdout from the days of COVID when we discovered that we were long on money and short on time. I think the best of the bunch are all worth buying into weakness. The airlines are breathtaking. I’ve never seen anything like it.”
Our Methodology
For this article, we compiled a list of 8 stocks that were discussed by Jim Cramer during the episode of Mad Money aired on February 19. We listed the stocks in the order that Cramer mentioned them. We also provided hedge fund sentiment for each stock as of the fourth quarter of 2024, which was taken from Insider Monkey’s database of over 1,000 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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
Marriott International, Inc. (NASDAQ:MAR)
Number of Hedge Fund Holders: 69
Cramer highlighted that Marriott International, Inc. (NASDAQ:MAR) has been rising recently and also reported solid earnings results.
“When you travel, you need someplace to stay, don’t you? There are two stocks that are roaring in this cycle. Marriott and Airbnb, they just reported excellent numbers. These were cyclical stocks before Covid. Now they’re secular, meaning they seem to have growing, growth no matter what.”
Marriott International, Inc. (NASDAQ:MAR) operates and franchises a range of hotels, residences, timeshares, and yachts worldwide, under several well-known brands. A few weeks ago, agreeing with a caller that the company is the top name in lodging and hotel, Cramer commented:
“They are, and I don’t even mind that the stock is three points off its high. You buy some and then you let it go down. It is at 30 times earnings. That is a high multiple for Marriott but the travel thesis is so strong, you don’t know when you’re gonna get in, but you buy some. You don’t buy all of it right now, you buy some. That’s the prudent way to do it.”
Overall, MAR ranks 2nd on our list of stocks that Jim Cramer suggested buying on weakness. While we acknowledge the potential of MAR 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 MAR 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.
