Key Points
- CNBC’s Jim Cramer noted that GE Aerospace’s post‑earnings pullback overlooks a strong beat‑and‑raise quarter.
- He views the decline as a buying opportunity, pointing to the company’s robust backlog and conservative guidance.
CNBC’s Jim Cramer stated on Thursday that investors are undervaluing another strong quarter from GE Aerospace. He added that existing shareholders should retain their positions, and prospective investors seeking a non‑technology growth play should consider initiating a stake. The jet‑engine manufacturer fell more than 4% on Thursday despite reporting better‑than‑expected second‑quarter results and raising its full‑year outlook. The stock is now approximately 9% below its record closing price on July 6. GE Aerospace, the sole remaining entity after the separation of GE Power (GE Vernova) in April 2024 and the earlier spin‑off of GE Healthcare, posted a substantial beat and raise. Cramer remarked that the company is offering a sizable discount relative to its recent performance, making it an attractive entry point. He attributed the sell‑off to a slowdown in order growth following an unusually strong prior period, noting that aerospace orders are inherently lumpy and that a single quarter’s figures should not be overemphasized. According to Cramer, the backlog exceeds $210 billion, representing more than four years of revenue at current rates, underscoring sustained demand. While updated guidance suggests slower revenue growth in the second half, he highlighted GE’s historical tendency to issue conservative forecasts and the potential for outperformance. Additionally, Cramer expressed confidence in management’s initiatives to streamline manufacturing and alleviate supply‑chain constraints through the “Flight Deck” operating model.
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