Jim Cramer Gave A Cautious But Optimistic Green Light On Archer Aviation Inc. (ACHR)

We recently compiled a list of the Jim Cramer Discussed These 15 Stocks Recently. In this article, we are going to take a look at where Archer Aviation Inc. (NYSE:ACHR) stands against the other stocks.

Jim Cramer opened Monday’s Mad Money episode with the observation that CEOs gathered at the NFL’s Super Bowl game weren’t just there for football. They were there to talk business, politics, and the economy. According to Cramer, their conversations revealed what’s truly shaping corporate America’s mindset right now, with the biggest one having to do with the current U.S. President:

“Nobody can figure out Donald Trump. These CEOs are baffled… They like that he’s attacking the federal bureaucracy, but they don’t understand why Elon Musk is wasting time on the small stuff.”

He also noticed that they appear more relaxed, confident and bullish under the new regime, compared to the previous one under Biden.

“There’s been a shocking amount of new business going on… CEOs no longer feel like the government is out to get them. Even Democratic donors can’t believe how disrespected they were by the Biden White House.”

He also pointed out that all CEOs think Wall Street valuations are stretched, although Cramer is still bullish.

“They almost all think the stock market’s too high, but their own stocks are too low. When I tell them the market’s actually undervalued and I like their stocks, they nod. But they think I’m a dreamer.”

Finally, of course, the big theme was around Trump’s tariffs and their impact on the markets.

“They all hate Trump’s tariff plans. These CEOs think they’re disorganized, don’t make sense, won’t raise money, and are terrible for business. They’re free traders at heart and totally baffled by Trump’s agenda.”

Our Methodology

For this article, we compiled a list of 15 stocks that were discussed by Jim Cramer during the episode of Mad Money aired on February 18. We listed the stocks in the order that Cramer mentioned them. We also provided hedge fund sentiment for each stock as of the third quarter of 2024, which was taken from Insider Monkey’s database of 900 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 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).

Is Archer Aviation Inc. (ACHR) The Unstoppable Growth Stock To Buy According to Reddit?

A technician assembling an electric aircraft, highlighting the company’s manufacturing capabilities.

Archer Aviation Inc. (NYSE:ACHR)

Number of Hedge Fund Holders: 36

When a caller asked about adding Archer Aviation (NYSE:ACHR) to his son’s stock portfolio, Cramer gave a cautious but optimistic green light:

“Here’s the deal, because you said it’s for your son, I’m going to okay it. Why? Because strange things happen. A lot of people think Archer’s a little out there, like it’s ‘Lost in Space.’ But they just received FAA certification for a Public Training Academy. Maybe this thing is for real. If it’s for your boy, fine. He’s got his whole life ahead of him. Don’t put your money in, put his.”

Archer Aviation focuses on electric vertical takeoff and landing (eVTOL) aircraft, aiming to revolutionize urban air mobility. The FAA certification is a big milestone in its path toward commercial operations.

While Cramer’s endorsement was reserved, he acknowledged Archer’s progress, suggesting it might be worth the risk for younger investors with time on their side.

Overall ACHR ranks 7th on our list of the stocks Jim Cramer discussed recently. While we acknowledge the potential of ACHR 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. If you are looking for an AI stock that is more promising than ACHR but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stock To Buy Now and Complete List of All AI Companies Under $2 Billion Market Cap.

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