Key Points
- CNBC’s Jim Cramer said GE Aerospace’s post-earnings sell-off overlooks another strong beat-and-raise quarter.
- He thinks the pullback is a buying opportunity, citing the company’s strong backlog and conservative guidance.
CNBC’s Jim Cramer said Thursday that investors are overlooking another strong quarter from GE Aerospace . “If you already own it, I think you should hold onto it,” the ” Mad Money ” host said. “And if you don’t own it 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% Thursday despite reporting better-than-expected second-quarter results and raising its full-year outlook. The stock is now down almost 9% from its record close on July 6. GE Aerospace is the remaining company that emerged after the General Electric conglomerate spun-off its power business GE Vernova in April 2024. It had separated its medical technology unit GE Healthcare the year before that . “This company just reported a terrific beat and raise quarter, yet you’re not just getting that quarter for free, you’re getting it for a sizable discount,” he said. “I think that makes for a tremendous buying opportunity.” Cramer said the GE Aerospace sell-off appeared to stem from a slowdown in order growth after an exceptionally strong stretch. Orders rose 17% in the quarter, down from 87% growth in the first quarter, but he argued investors are putting too much weight on a single quarter. “Orders in aerospace are famously lumpy, so I’m not too worried about quarter-to-quarter fluctuations here,” he said. He noted GE Aerospace’s backlog has climbed to more than $210 billion — representing more than four years of revenue at the company’s current pace — underscoring the strength of demand despite concerns about orders. Cramer also acknowledged that the company’s updated guidance implies slower revenue growth in the second half of the year, but said GE has a long history of issuing conservative forecasts and could ultimately outperform its own projections. Beyond the quarterly numbers, Cramer said he remains encouraged by management’s efforts to streamline manufacturing and ease supply-chain bottlenecks through its “Flight Deck” operating model. Sign up now for the CNBC Investing Club to follow Jim Cramer’s every move in the market. Disclaimer Questions for Cramer? Call Cramer: 1-800-743-CNBC Want to take a deep dive into Cramer’s world? Hit him up! Mad Money Twitter – Jim Cramer Twitter – Facebook – Instagram Questions, comments, suggestions for the “Mad Money” website? madcap@cnbc.com
