Jim Cramer is Talking About These 12 Stocks

7. GE Aerospace (NYSE:GE)

Number of Hedge Fund Holders: 86

GE Aerospace (NYSE:GE) is a favorite of Cramer’s. Talking about the company’s recent earnings report, he said:

“Number one is GE Aerospace… a favorite of mine. Today we learned that there was some weakness in some orders and some lingering supply chain issues when it came to building aircraft engines. Now it wouldn’t be a big deal except the stock was already up 90% for the year as of last night’s close. So people sold first and then asked questions later. They don’t think, Hey, wait a second, GE has years of demand ahead and aerospace is a great secular growth market. No, that takes wisdom, genuine wisdom. And who the heck has time for wisdom when you can just ring the register? And that’s how a fantastic stock like GE Aerospace closes down 9% and no more than that.”

GE Aerospace (NYSE:GE) is involved in the design and production of engines for commercial and military aircraft, along with integrated engine components, electric power systems, and mechanical systems for aircraft. In its third-quarter results, released on October 22, the company reported earnings of $1.15 per share and revenue totaling $8.9 billion. While this earnings figure surpassed expectations by a slight margin, the revenue fell short of the consensus estimate.

The report also highlighted some challenges, particularly regarding the LEAP engines, which are produced through a joint venture with Safran. The LEAP engines serve as the exclusive option for the Boeing 737 MAX and are also available for the Airbus A320 neo family. Due to supply chain issues and delays in aircraft deliveries, GE Aerospace (NYSE:GE) has revised its outlook for LEAP engine deliveries, now expecting a 10% decline in 2024 compared to the previous year.

Initially, management had expected a growth rate of 20% to 25% for LEAP deliveries. Despite these setbacks, the company achieved an increase in services revenue, rising by 10% driven by higher sales of spare parts. The commercial engine and services segment saw an overall revenue growth of 8% year-over-year, although this marked a decline from the 14% growth recorded in the prior quarter. On a positive note, total orders surged by 28% during the quarter, reaching $12.6 billion, indicating a strong demand for its products and services.