We recently compiled a list of the 10 Stocks on Jim Cramer’s Radar. In this article, we are going to take a look at where AerCap Holdings N.V. (NYSE:AER) stands against the other stocks on Jim Cramer’s radar.
Jim Cramer, the host of Mad Money, addressed some of Wall Street’s primary concerns on Tuesday, offering insights into how the White House may interpret the ongoing issues surrounding President Donald Trump’s aggressive tariff policies. As alarmed investors continue to react to the potential consequences of these actions, Cramer outlined the main observations that point to the administration’s unpredictable approach. First, Cramer emphasized that the White House is less concerned about whether a country is an ally and more focused on whether that nation is paying its fair share.
“What matters to the White House is not whether a country is an ally. It’s whether that country pays its freight. Its approach is very uneven, which makes it very difficult to fathom.”
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Moving on, Cramer highlighted the apparent disregard the White House has for preexisting trade agreements. Even if a deal was negotiated during Trump’s first term or involved allies, it seems irrelevant to the current administration’s priorities. Cramer noted that the White House’s stance is driven by a belief that trade agreements should not result in the loss of American jobs, regardless of previous negotiations.
Cramer then pointed out the inconsistency in tariff changes. He mentioned that American companies relying on labor from Mexico and Canada could face significant costs, while companies from countries like South Korea, Japan, and various European nations enjoy minimal tariffs on the millions of cars they ship to the U.S. He remarked that fairness does not appear to be a main consideration in these decisions. Next, Cramer touched on Taiwan’s situation and said:
“Taiwan may or may not be relevant. It, it could help its cause if it started paying more for its defense. It doesn’t matter that Taiwan Semi’s located there and is the most, single most important strategic asset in the world for both our industry and our military.”
Cramer also pointed out that there is still no clear timeline for when the tariffs imposed on Mexico will be paid. In another remark, Cramer discussed the uncertainty of whether the White House will offer some form of rebate to American companies that commit to expanding jobs and factories within the U.S. Addressing the broader picture, Cramer emphasized that the concerns of U.S. allies or investors seem to have little influence on the White House’s approach.
“It makes no difference what our allies say or do. Their assurances mean nothing. If you’re upset and sell stocks because of them, or if you bought stocks while Biden was president, or even a few months ago when you could convince yourself that Trump wouldn’t go crazy with the tariffs, well, that doesn’t matter as the White House sees it.”
According to Cramer, the current administration’s priorities are focused on advancing American dominance, not responding to investor or international concerns. He concluded by highlighting the administration’s disbelief that investors continue to voice complaints over the administration’s actions.
Our Methodology
For this article, we compiled a list of 10 stocks that were discussed by Jim Cramer during the episode of Mad Money aired on March 4. 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).
A commercial jetliner taking off, highlighting the advanced airframe and engine parts produced by the company.
AerCap Holdings N.V. (NYSE:AER)
Number of Hedge Fund Holders: 69
Noting its 27 cents a share dividend and a newly implemented $1 billion share buyback program, a caller asked Cramer’s opinion of AerCap Holdings N.V. (NYSE:AER) and Cramer replied, “It’s a winner. I think you should buy it. I really like it. I love management.”
AerCap Holdings N.V. (NYSE:AER) focuses on leasing, financing, selling, and managing commercial flight equipment, providing asset management, cash management, and administrative services. O’keefe Stevens Advisory stated the following regarding the company in its Q4 2024 investor letter:
“AerCap Holdings N.V. (NYSE:AER) performed well in 2024 due to a robust secondary market for used aircraft stemming from supply shortages. Throughout 2024, the stock rose steadily, finishing the year up 29.8%, while initiating its first dividend in May. Our thesis remains unchanged as secondary transactions occur at significant premiums to carrying values. We are most excited that lease renewals signed in 2023-2024 will finally impact results, improving profitability. We expect AerCap to compound book value in the mid-teens over the next several years. We expect another year of above-average returns as the stock trades at tangible book value, 7.5 times our 2025 EPS estimate, and optionality related to Russian insurance claims.”
Overall AER ranks 3rd on our list of the stocks on Jim Cramer’s radar. While we acknowledge the potential of AER 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 time frame. If you are looking for an AI stock that is more promising than AER 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.