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.

READ ALSO 7 Stocks on Jim Cramer’s Radar and Jim Cramer’s Game Plan: Top 14 Stocks to Watch

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.

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.