Jim Cramer Says United Airlines Holdings (UAL) Stock is Cheap -‘I’m a Buyer’

Insider Monkey
04 Apr

We recently published a list of Jim Cramer Was Talking About These 10 Stocks Amid Trump’s Trade Wars. In this article, we are going to take a look at where United Airlines Holdings Inc (NASDAQ:UAL) stands against other stocks that Jim Cramer was talking about amid Trump’s trade wars.

Jim Cramer in a latest program on CNBC urged investors to start accepting the reality of the new economic system under President Trump and said the new tariffs will result in higher prices and more volatility. Cramer said Trump does not “care” about stock prices or inflation and wants to punish the country’s trading partners.

“Yes, I want this over. Yes, I want clarity. I want some sense of how this can all end, but that makes me a fool like the rest of us. We keep thinking that’s the point. That’s how… that’s not how Trump sees it. Here is the point: we should simply be looking at companies that cater to small- and medium-sized businesses that can’t be hurt by tariffs. We need to accept a higher level of inflation because it’s coming. We should take our out some money and put it on the sidelines, betting that this will end someday, even if we don’t know when. But right now, we have to get with the program and the president. The program is taking down our trading partners and hurting bottom lines all over the place. He doesn’t care. He demonstrated that tonight. So you better get used to it.”

READ ALSO: 7 Best Stocks to Buy For Long-Term and 8 Cheap Jim Cramer Stocks to Invest In

For this article we picked 10 stocks Jim Cramer was talking about over the past few weeks. With each stock, we have mentioned the number of hedge fund investors. 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).

United Airlines Holdings Inc (NASDAQ:UAL)

Number of Hedge Fund Investors: 54

Jim Cramer during a program on CNBC last month said he’s a “buyer” of United Airlines Holdings Inc (NASDAQ:UAL).

“I am a buyer of United Airlines. I know it’s down 15%, but it became, again, a momentum stock. I think you’re right, I think it’s cheap. The travel thesis is strong. If I had to pick up some United Airlines, I’d buy some here, then wait till around 70 and buy the rest. That’s what I’ve been doing for the travel trust when I see stocks just like this.”

Patient Capital Management stated the following regarding United Airlines Holdings, Inc. (NASDAQ:UAL) in its Q4 2024 investor letter:

United Airlines Holdings, Inc. (NASDAQ:UAL) had a strong fourth quarter, gaining 70.2% in the period. The company benefitted from continued strong demand that surprised the market as well as the initiation of a buyback program, the first since COVID. There continues to be strong travel demand from both retail and business travelers. According to the International Air Transport Association (IATA), global air passenger travel is still below the pre-COVID implied trend path despite reaching a new all-time high this year. United’s focus on the customer over the last few years has led to strong improvement in net promoter scores (NPS) which should continue to flow through the model via better TRASM (total revenue per available seat mile) and higher cash flows and earnings. As of today, United alone accounts for ~30% of the overall industry’s profits. We expect this market share to grow and be defensible as we transition to an environment where customer service becomes the differentiating factor, and scale provides unparalleled ability to reinvest in the customer experience.”

Overall, UAL ranks 2nd on our list of stocks that Jim Cramer was talking about amid Trump’s trade wars. While we acknowledge the potential of UAL, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than UAL but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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