Important points
CNBC’s Jim Cramer said Thursday that investors are missing out on another strong quarter for GE Aerospace. “If you already own it, I think you should keep it,” the “Mad Money” host said. “And if you don’t own a company and you want a non-tech company with real growth, this is your chance to start a position.”The jet engine maker fell more than 4% on Thursday even though it reported better-than-expected second-quarter results and raised its full-year outlook. The stock is currently down nearly 9% from its record closing price on July 6th. GE Aerospace is the remaining company created after the General Electric conglomerate spun off its power business GE Vernova in April 2024. The company had spun off its medical technology division, GE Healthcare, the previous year. “This company just reported a great beat-and-raise quarter, and not only are you getting that quarter for free, you’re getting it at a deep discount,” he said. “I think it’s going to be a huge buying opportunity.” Kramer said GE Aerospace’s decline appears to be due to slowing order growth after unusually strong growth. Orders rose 17% in the quarter, slowing from the 87% increase in the first quarter, but he argued that investors were focusing too much on a single quarter. “Aerospace orders are notoriously volatile, so I’m not too worried about quarter-to-quarter fluctuations,” he said. He noted that GE Aerospace’s order backlog is more than $210 billion, equivalent to more than four years of revenue at the company’s current pace, highlighting the strength of demand despite order concerns. Cramer also acknowledged that the company’s latest guidance suggests slower sales growth in the second half of the year, but said GE has a long history of issuing conservative forecasts and could end up beating its own forecasts. Beyond the quarterly numbers, Kramer said he remains encouraged by management’s efforts to streamline manufacturing and alleviate supply chain bottlenecks through its “flight deck” operating model. Subscribe to CNBC Investing Club today to follow Jim Cramer’s every move in the markets. Questions about Cramer’s disclaimer? Call Cramer: 1-800-743-CNBC Want a deeper look into Cramer’s world? Punch him! Mad Money Twitter – Jim Cramer Twitter – Facebook – Instagram Have questions, comments, or suggestions about the Mad Money website? madcap@cnbc.com
