We recently compiled a list of the Jim Cramer’s Latest Game Plan: 20 Stocks to Watch. In this article, we are going to take a look at where Booking Holdings Inc. (NASDAQ:BKNG) stands against the other stocks featured in Jim Cramer’s latest game plan.
Jim Cramer, the host of Mad Money, recently advised investors to maintain composure as major companies release their earnings this week. Additionally, he highlighted the significance of the upcoming nonfarm payroll report, set to be released on Friday, which he believes will have considerable implications for interest rates.
He said that weak hiring figures could prompt the Federal Reserve to continue cutting rates. Last Friday, Cramer noted a mixed performance in the markets: the Dow dropped by 260 points, the S&P fell slightly by 0.03%, while the Nasdaq managed a gain of 0.56%. Cramer characterized the current market conditions as a preparatory phase for an eventful week ahead, urging viewers to pay close attention.
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Cramer emphasized the importance of the employment data released on the first Friday of the month, particularly in light of the forthcoming Fed meeting.
“Speaking of employment, on the first Friday of the month, we get the nonfarm payroll report. I can’t stress how important this number is. We have an upcoming Fed meeting and we’re now seeing [that] cyclicals really missed their numbers because of higher interest rates. A lot of them are rolling over. But if employment stays as strong as it’s been, then we’re going to hear that there will be no November rate cut.”
Throughout his commentary, Cramer conveyed a clear message: while it may be tempting to sell, this period aligns with a cycle of Fed rate cuts, suggesting that buying could be the more prudent strategy. He reminded viewers that this week feels charged with significance, likening it to a playoff atmosphere where the stakes are exceptionally high.
In his concluding remarks, Cramer said:
“Bottom line, huge week, huge opportunity. Just please remember, the first move’s been the wrong move, I’d say probably maybe, almost half the time since this earnings season began. Wait to process the numbers, listen to the conference call before you pull the trigger.”
Our Methodology
For this article, we compiled a list of 20 stocks that were discussed by Jim Cramer during his episode of Mad Money on October 25. We listed the stocks in ascending order of their hedge fund sentiment as of the second quarter, which was taken from Insider Monkey’s database of more than 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).
A fast-paced travel agent making a bookings for a family vacation package.
Booking Holdings Inc. (NASDAQ:BKNG)
Number of Hedge Fund Holders: 96
Referring to Booking Holdings Inc.’s (NASDAQ:BKNG) consistently strong quarterly reports, Cramer highlighted the incredulous speculation about traveling trends among consumers.
“Here’s one that makes a big splash every time. It’s called Booking Holdings. Yes, the old Priceline. It’s been ages since this company didn’t have a smashing quarter. Then everybody speculates about whether the consumer is still traveling.”
Booking Holdings (NASDAQ:BKNG) is a leading provider of online and traditional travel services, including restaurant reservations and related offerings. Its second-quarter earnings surpassed analyst expectations in key areas as total revenue reached $5.86 billion, a year-over-year growth of 7.3%. Additionally, net income increased by 18%, indicating solid performance in a competitive market.
Management offered a cautious outlook for the remainder of the year, anticipating third-quarter room night growth to fall between 3% and 5%, a decrease from the 7.1% growth experienced in the second quarter and significantly lower than the 14.9% growth reported during the same period last year.
On October 24, Oppenheimer analyst Jed Kelly raised the price target on Booking Holdings (NASDAQ:BKNG) to $5,000 from $4,200 and kept an Outperform rating. While the recent increase in share prices, along with geopolitical and electoral uncertainties, presents challenges for upcoming earnings, Oppenheimer continues to view Booking as a favorable long-term investment. The firm noted that sentiment around the company is positive within the online travel sector, with increased confidence that profit margins will expand in a stabilizing travel environment by 2025.
Overall BKNG ranks 8th on the list of stocks featured in Jim Cramer’s latest game plan. While we acknowledge the potential of BKNG 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 BKNG 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.