Jim Cramer Prefers GE Over TransDigm (TDG): "No Need to Descend to TransDigm"

We recently published a list of 9 Stocks on Jim Cramer’s Radar. In this article, we are going to take a look at where TransDigm Group Incorporated (NYSE:TDG) stands against other stocks on Jim Cramer’s radar.

On Monday, Mad Money host Jim Cramer drew a parallel to 2011 and argued that what we are seeing is another crisis that feels manufactured, one he believes could be resolved just as easily as it was created, “with the stroke of a pen,” as he described it.

“Could this be another earnings season that simply doesn’t matter because there are bigger forces at work that are going to crush the entire market? It’s happened before, back in 2011.”

READ ALSO Jim Cramer’s Thoughts on These 5 Stocks and Jim Cramer’s Game Plan for Next Week: 25 Stocks in Focus

Cramer pointed out that the market has opened lower nearly every day, not because of disappointing earnings, those, he said, have largely held up, except in the case of companies with significant exposure to China, which he described as now being a liability for American businesses. He emphasized that the situation is not being driven by corporate fundamentals but by factors outside of earnings. He added:

“At least this time, the problem’s about America itself. As the president begins to create a constitutional crisis over the potential firing of Jay Powell while Congress once again deals with the interminable debt crisis, I think we can expect another ratings agency to begin the discussion of a debt downgrade.”

According to Cramer, investors should begin to accept the reality of a market that drops every morning, regardless of how strong earnings might be. The dominant forces in the environment, he insisted, are not balance sheets or profit margins. He remarked that the current period will be shaped by discussions around tariffs and the ongoing threats to remove Jerome Powell from his position. He added:

“Unfortunately, this time, the United States is not a safe haven as other countries appear much more stable and our bonds act squirrelly, almost as if they’re anticipating another painful debt downgrade. Ironic. We could get much higher yields because a president wants them to be lower in the worst way. The worst way being to poke fun, to ride, chide, and make life hell for a man who has served our country well, and I think deserves better.”

Our Methodology

For this article, we compiled a list of 9 stocks that were discussed by Jim Cramer during the episode of Mad Money aired on April 21. We listed the stocks in ascending order of their hedge fund sentiment 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).

TransDigm Group Incorporated (NYSE:TDG)

Number of Hedge Fund Holders: 69

A caller asked Cramer’s thoughts on TransDigm Group Incorporated (NYSE:TDG). Here’s what Mad Money’s host had to say in response:

“I like aerospace very much. Now my favorite though is, there’s no need to descend to TransDigm when you have GE, which reports tomorrow, and I think is a fantastic company that I’ve been thinking about for the Charitable Trust. I’ve been reluctant to add any names, though, as we’ve been taking off stock. We’re not oversold enough yet.”

TransDigm (NYSE:TDG) designs and manufactures highly engineered components used in aircraft, serving both commercial and military markets. The company also provides specialized parts and systems for non-aviation industries like heavy equipment and space systems. On April 17, Truist reduced its price target on TDG to $1,490 from $1,534 but maintained a Buy rating. The update was part of a broader Q1 preview for the Aerospace & Defense sector.

The firm pointed out that the start of earnings season comes with a lot of uncertainty, and management teams may not offer clear guidance for 2025. Concerns around tariffs and the possibility of a recession could weigh on the cyclical industry. Truist mentioned that investors may want to shift focus toward the more stable defense sector, especially with recent signs of increased defense spending.

Overall, TDG ranks 3rd on our list of stocks on Jim Cramer’s radar. While we acknowledge the potential of TDG 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. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than TDG but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

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