Jim Cramer’s New Picks: 5 Stocks to Buy

3. Royal Caribbean Cruises Ltd (NYSE:RCL)

Number of Hedge Fund Investors: 54

During his program on April 10, Jim Cramer talked about how some of the top performers with strong fundamentals recently saw a decline in their share price. Royal Caribbean Cruises Ltd (NYSE:RCL) was one of these stocks. Cramer said Royal Caribbean Cruises Ltd (NYSE:RCL) has “outshined” its competitors over the past several months, but the stock recently fell after two incidents — one involving a young man who jumped from a Royal Caribbean Cruises Ltd (NYSE:RCL) cruise, and another in which a 66-year-old passenger with dementia went missing. Cramer said these incidents are sad but do not warrant a decline in Royal Caribbean Cruises Ltd (NYSE:RCL) share price. He thinks some people were just looking for an excuse to “ring the register” on the stock which, according to Cramer, is “very strong.”

Ariel Fund stated the following regarding Royal Caribbean Cruises Ltd. (NYSE:RCL) in its fourth quarter 2023 investor letter:

“Some holdings in the portfolio advanced considerably this quarter. Global cruise vacation company, Royal Caribbean Cruises Ltd. (NYSE:RCL), advanced on another quarterly earnings beat and subsequent raise in full-year guidance driven by stronger than anticipated consumer demand and solid cost containment. The company continues to experience solid momentum in onboard spend, while 2024 booking trends are significantly ahead of historical ranges at higher pricing. We believe the resiliency of the core cruise consumer in combination with management’s superior operational expertise and revised earnings outlook lays the foundation for RCL to exceed its three-year strategic imperative, the Trifecta Program.”