10 Small-Cap Stocks Jim Cramer is Talking About Amid Latest Market Rotation

3. ATI Inc (NYSE:ATI)

Number of Hedge Fund Investors: 31

Jim Cramer called ATI Inc (NYSE:ATI) the “best specialty steel company on earth” including stainless and tungsten. Cramer said that much of the company’s steel is used in aerospace.

“I really like it. That’s a small cap you’d want.”

ATI Inc (NYSE:ATI) has revealed $4 billion in new sales commitments through 2040. Out of this, about $2.2 billion of this revenue will be realized by the end of this decade. Most of these contracts are for nickel alloys in the jet engine market.

At the start of the year, ATI Inc (NYSE:ATI) Advanced Alloys and Solutions segment faced demand headwinds but those were offset by strengths in High-Performance Materials and Components segment.

Some other headwinds ATI Inc (NYSE:ATI) is facing are related to 737 Max plans including technical errors and production rate reductions. But analysts believe strong demand in other business segments can offset these in the short term.

ATI Inc (NYSE:ATI) business of supplying specialty materials to major engine and airframe OEMs and is gaining market share all over the world, including Russia. Defense sales are also growing due to strong foreign military sales and new programs like the U.S. Army’s latest armored fighting vehicle.