Jim Cramer Loves Rtx (RTX) – Here’s Why

We recently published a list of Jim Cramer’s February Portfolio: Top 10 Stocks. In this article, we are going to take a look at where Rtx Corp (NYSE:RTX) stands against other stocks in Jim Cramer’s February portfolio.

Jim Cramer in a latest program on CNBC talked about the importance of investing in companies with good management teams. Cramer said that sometimes struggling companies could be turned around because of smart leadership.

“I have to tell you, I do want more out of my stocks and just better than feared. I am tired of tech just sitting there and people arguing about it all the time. It’s getting boring to me. And that’s why I want to go far afield tonight and suggest that we look for the companies with the best new coaches, because we know a great new coach with a fresh look can easily turn around a company.”

Cramer then talked about several companies where strong leadership teams and intelligent CEOs turned around struggling businesses.

“Not all publicly traded companies are hostages to forces beyond their control, like a Chinese outfit we never heard of that has just made it so all we talk about is. Sometimes when you bring in a great new CEO, they can turn around the whole business, giving the investor spectacular gains, even when tech blinds us like mustard gas.”

READ ALSO 7 Best Stocks to Buy For Long-Term and 8 Cheap Jim Cramer Stocks to Invest In

For this article we picked 10 stocks Jim Cramer talked about in his recent programs. With each stock, we have mentioned the number of hedge fund investors. 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).

Jim Cramer Loves Rtx (RTX) - Here’s Why

Rtx Corp (NYSE:RTX)

Number of Hedge Fund Investors: 72

In his latest program, Jim Cramer praised the quarterly results of defense giant Rtx Corp (NYSE:RTX) and mentioned the company’s growth catalysts in the Middle East.

“What a pleasure it is to just have a purely good quarter. 11% organic sales growth, 15% commercial aftermarket, 10% commercial operating, and then 10% defense. They’re making money in defense, cybersecurity.. It is true that they do a huge amount of business in the Middle East—a monster. And when Israel has to replenish, when the European continent wants to protect itself against Russia, you have to be thinking that that’s their orders too.”

Longleaf Partners Fund stated the following regarding RTX Corporation (NYSE:RTX) in its Q4 2024 investor letter:

“RTX Corporation (NYSE:RTX) – Aerospace and defense company RTX was a top contributor for the year. Our appraisal value has grown nicely since we first purchased the company just over a year ago. While the issues for Pratt & Whitney’s (P&W) Geared Turbofan engine are still not yet fully fixed, they have gotten better and given us another reminder that the point of maximum pessimism is only obvious in retrospect. We continue to have a conservative valuation on P&W so view this as a source of future value upside. The Raytheon segment has also performed better as the year has gone on, with recent signs of margin improvement. Strong industry tailwinds, prudent capital allocation and a solid balance sheet provide a foundation for sustained growth and eventual full value recognition.”

Overall, RTX ranks 2nd on our list of stocks in Jim Cramer’s February portfolio. While we acknowledge the potential of RTX, our conviction lies in the belief that under the radar 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 RTX but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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