We recently published an article titled Jim Cramer Talked About These 7 Stocks Recently. In this article, we are going to take a look at where Southwest Airlines Co. (NYSE:LUV) stands against the other stocks Jim Cramer recently discussed.
Jim Cramer, the host of Mad Money, expressed frustration on Thursday over the negative outlook he believes the White House is projecting about the economy. He explained that while he felt a sense of optimism and wanted to get excited about positive developments in the stock market, he held back.
“I wanted to get excited, but you know what I had to do? I had to hold my breath because when this market’s getting ahead of steam going, you know what you can bet on? The president will post something rancorous, dispiriting, and confusing and the market will immediately get put through the meat grinder.”
READ ALSO Jim Cramer on These 7 Travel and Leisure Stocks and Jim Cramer Discussed These 7 Stocks
Cramer noted that unfortunately, that is exactly what occurred, triggering a wave of selling that persisted throughout the session. Cramer suggested that a shift in attitude from President Trump could change the tone of the market. Cramer said, “I say we do something,” and proposed imagining a scenario where the President took a more positive approach. He suggested that if Trump were to adopt a positive attitude and use his sense of humor in a constructive way, it could help remind the public that things are not as bad as they may seem. Cramer emphasized that such an approach wouldn’t be unrealistic; instead, it would highlight the good aspects of the economy and shift the narrative away from negativity.
Furthermore, he pointed out that what really matters is the administration’s consistent messaging. He noted that both President Donald Trump and the Treasury Secretary seem determined to emphasize the negative, especially by suggesting that tariffs will cause significant pain. While it is a complicated issue, he believes it is unnecessary to continuously highlight the negative aspects without acknowledging any of the positives.
“It’s not necessary to do this, nor will they highlight anything good that’s going on here. It makes people feel like everything’s terrible, which isn’t true.”
He went on to stress that while the White House cannot control every aspect of the economy, they do have the power to shape the narrative. Cramer suggested that rather than focusing on highlighting hardships, they should consider a more subdued approach, especially when it comes to announcing layoffs or making drastic cuts.
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Instead, Cramer urged the administration to quietly focus on improving trade relations with other countries, ensuring that they treat the U.S. more fairly and with fewer punitive measures. If such changes need to be made, he recommended doing so without drawing attention to them.
“So here’s the bottom line: Every day there is something to celebrate in the business world because the business world is fantastic. We’d be in much better shape if the administration would highlight that. Believe me, the bad doesn’t need your help. It’ll get the word out all by itself.”
For this article, we compiled a list of 7 stocks that were discussed by Jim Cramer during the episode of Mad Money aired on March 13. Cramer talked about how President Trump could post about these stocks on social media to justify the positives they have. 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).
They Finally Figured It Out! Jim Cramer Cheers Southwest Airlines Co. (LUV)’s Big Move
A commercial Boeing 737 aircraft flying in the sky with the well-known SWABIZ logo on it.
Number of Hedge Fund Holders: 34
Mentioning Southwest Airlines Co.’s (NYSE:LUV) decision to cancel its bags fly-free policy, Cramer noted:
“‘How about that Southwest Air. I was getting worried about that team, but what a comeback. Who knew charging for bags would make such a difference.’”
Southwest Airlines Co. (NYSE:LUV) is a carrier that offers scheduled flight services across the United States and to certain nearby international destinations. On March 12, Bernstein analyst David Vernon increased LUV stock’s price target from $31 to $33 while maintaining a Market Perform rating on the stock.
The firm noted that after a strong finish to 2024, the U.S. airline industry is adjusting its Q1 2025 forecasts. While market conditions appear softer, it remains uncertain whether this softness signals the start of a downturn or just a phase of cautious adjustments, according to Bernstein. Despite this uncertainty, the firm pointed out that Southwest Airlines Co. (NYSE:LUV) impressive guidance increase is causing short sellers to reconsider the potential for further declines.
Overall LUV ranks 4th on our list of the stocks Jim Cramer recently discussed. While we acknowledge the potential of LUV 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 LUV 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.
