Jim Cramer on GE Aerospace: "You're Practically Getting This Terrific Quarter for Free"

GE Aerospace (NYSE:GE) is one of the stocks that was recently put under the microscope by Jim Cramer. Referring to the company and GE Vernova, Cramer said:

“I want to walk you through what’s going on here because these two represent very important parts of both the real economy and, yes, the data center economy. Why don’t we start with GE Aerospace… To me, this was an amazingly impressive quarter… While there were some concerns about GE Aerospace’s implicit guidance for the fourth quarter, I think that’s mainly management being conservative. On the other hand, there are a ton of positives here. In fact, I could argue that this company, stewarded by Larry Culp, he’s such a great executive, maybe the best industrial report this year…

Keep in mind, GE Aerospace really cleans up with their services business because it carries much higher margins than selling equipment… If you get that maintenance business, you’re going to make a lot of money… At the same time, GE Aerospace had lots of positive things to say about their supply chain, something that requires a lot of attention in this age of much higher tariffs…

In the end, both GE Aerospace and GE Vernova are poised to be winners from the president’s trade war because when other countries decide to make nice with Trump by narrowing their trade deficits with us, they need to buy lots of big-ticket items to really move the needle. That means they need to buy aircraft… They need to buy turbines… I think this is one of the best ways to play the incredibly robust bull market in aerospace and travel. Plus, it doesn’t hurt that even with today’s rally, the stock’s only a few bucks higher than where it was trading before the latest quarter. You’re practically getting this terrific quarter for free.”

GE Aerospace (NYSE:GE) designs and manufactures aircraft engines, power systems, and components for commercial and defense applications. The company’s operations include engine production, maintenance, and spare parts supply, covering jet and turboprop engines, avionics, and other related technologies.

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Disclosure: None. This article is originally published at Insider Monkey.