We recently published 12 Stocks on Jim Cramer’s Radar. Southwest Airlines Co. (NYSE:LUV) is one of the stocks on Jim Cramer’s radar.
Southwest Airlines Co. (NYSE:LUV)’s shares are up by 22.8% year-to-date. The gains have primarily come on the back of a 31.5% run since November 20th. Southwest Airlines Co. (NYSE:LUV) has been closely working with activist investor Elliott Management for more than a year. On December 8th, BMO Capital initiated coverage on the firm and set a $43 share price target along with a Market Perform rating. The firm outlined that Southwest Airlines Co. (NYSE:LUV) was experiencing inflation-driven margin pressures and suffering from a lack of premium options. However, BMO added that the airline did have a robust balance sheet. Southwest Airlines Co. (NYSE:LUV)’s balance sheet, as of September, included $28 billion in total assets, which included $3 billion in cash and $4.3 billion in long-term and current debt.
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Cramer discussed Southwest Airlines Co. (NYSE:LUV)’s price movement and praised the firm’s execution. His comments came before Elliott Management announced in a regulatory filing that it had reduced its stake to. 9.9% which is below the level required to call a special shareholder meeting. The CNBC TV host praised Southwest Airlines Co. (NYSE:LUV)’s narrative building as well:
“Look I think they came on air and told a pretty good story. The changes that were made were very significant. It’s a good example of execution.”
While we acknowledge the potential of LUV as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
