Jim Cramer is Bearish on These 5 Stocks

2. Carnival Corporation & plc (NYSE:CCL) 

Number of Hedge Fund Holders: 36    

Carnival Corporation & plc (NYSE:CCL) is a leisure travel company based in Florida. The former hedge fund manager gave the stock a Sell rating during the Lightning Round of his show on November 29. 

The rise of a new variant of COVID-19 has hit travel stocks like Carnival Corporation & plc (NYSE:CCL) in the past few weeks. The share price of Carnival Corporation has fallen close to 10% in the last five days. 

At the end of the third quarter of 2021, 36 hedge funds in the database of Insider Monkey held stakes worth $520 million in Carnival Corporation & plc (NYSE:CCL), up from 31 in the previous quarter worth $456 million.

In its Q1 2021 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and Carnival Corporation & plc (NYSE:CCL)  was one of them. Here is what the fund said:

“Several of our better performers in the first quarter were purchased while their business models were under stress from COVID restrictions or the macro environment the pandemic created. What gave us confidence in purchasing Carnival was the actions the company took to extend out their balance sheets until travel resumed. Both should benefit as a broader vaccination rollout prompts cruise lines to resume operations and consumers to start traveling again and are positioned to deliver better margins and gain pricing power as the economy normalizes due to the cost controls implemented during the downturn.”