Jim Cramer Says Southwest Airlines Has Become More Disciplined

Industry
โดย Insider Monkey·Read original
Summary · why it matters

Jim Cramer said on Mad Money that Southwest Airlines has become more disciplined and is a terrific turnaround story. He noted that the low-cost carrier has been operating much more efficiently since activist Elliott Investment Management got involved in the summer of 2024. Southwest's stock has fallen about 25% in less than two months and is trading at less than 15 times this year's earnings estimates, even though earnings are expected to more than triple. Cramer pointed out that earnings estimates have already come down from over $4 per share to $2.86 per share, which is still more than three times last year's earnings. He also speculated that if big airlines are eager to consolidate, they might want to own Southwest.

Impact on stocks 2

Industrials▲ · 2 stocks
Southwest Airlines Company
LUV
▲ PositiveCapitalrelevance

Cramer calls it a terrific turnaround story with disciplined operations and activist involvement, and notes low valuation and potential M&A interest.

Off-coverage companies 1

Elliott Investment Management L.P.Private▲ Positive
Capitalrelevance

Elliott's involvement is credited with improving Southwest's efficiency, which could benefit its investment.

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