We recently published a list of Jim Cramer Suggested Buying These 8 Stocks on Weakness. In this article, we are going to take a look at where Disney (NYSE:DIS) stands against other stocks that Jim Cramer suggested buying on weakness.

Jim Cramer, host of Mad Money, discussed the current state of business cycles last Wednesday, emphasizing how they were far from synchronized. He pointed out that different sectors were performing in contradictory ways, making it difficult for the Federal Reserve to determine its next move. While some industries are flourishing, others are struggling, and a few appear to be in serious decline.

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Cramer said that the chaotic landscape created a curious backdrop for the Nasdaq and the S&P 500, which continued to reach new highs, even as challenges persisted beneath the surface. Cramer noted that many of the stocks in these major indices were performing particularly well at the moment.

“And that’s why it feels so weird that the Nasdaq and the S&P 500 keep bumping up to new highs and yet so much bad is happening underneath. So many of the stocks in these indices are simply not that hot, including even some of the Mag seven. But that could change on a dime.”

Cramer also warned that the market could shift dramatically if the president takes action, a move he has been known to make frequently, for better or worse. According to Cramer, such actions could completely disrupt entire business cycles. Despite the overall market uncertainty, Cramer identified one clear winner: the travel and leisure sector.

“The most insanely positive cycle out there is travel and leisure. This one’s mostly a holdout from the days of COVID when we discovered that we were long on money and short on time. I think the best of the bunch are all worth buying into weakness. The airlines are breathtaking. I’ve never seen anything like it.”

Our Methodology

For this article, we compiled a list of 8 stocks that were discussed by Jim Cramer during the episode of Mad Money aired on February 19. 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).

The Walt Disney Company (NYSE:DIS)

Number of Hedge Fund Holders: 108

Cramer noted the skepticism around The Walt Disney Company’s (NYSE:DIS) cable business despite the company’s success.

“You need someplace to go, don’t you? I keep hounding you to buy the stock of Disney because it’s doing so well. Yet all people seem to care about is that some weak link in the cable business that I think is gonna pick up this quarter anyway. Theme parks, yes, they are expensive, but it doesn’t seem to stop people from going to them.

We go to a cruise… a Disney cruise or buy the stock of Royal Caribbean, keeps beating the numbers and beating numbers and beating numbers. Again, the cruise lines haven’t been cyclical since Covid.”

Disney (NYSE:DIS) is a global entertainment powerhouse involved in producing and distributing films and TV shows, offering streaming platforms, and managing theme parks and resorts. The company also provides sports entertainment and live event services.

Overall, DIS ranks 4th on our list of stocks that Jim Cramer suggested buying on weakness. While we acknowledge the potential of DIS 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 DIS 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.