Jim Cramer’s Best Performers List: 12 Stocks Cramer is Talking About

6. GE Aerospace (NYSE:GE)

Number of Hedge Fund Holders: 86

Cramer mentioned GE Aerospace (NYSE:GE) while talking about the bull market and how General Electric split into three separate businesses. He said:

“When this bull market was born, General Electric was still one company. Now it’s three companies: GE Aerospace, GE HealthCare, GE Vernova. I like them all. With Boeing and Airbus having huge production problems, airplanes need to last longer. So GE’s aerospace engine service business is on fire.”

GE Aerospace (NYSE:GE) is involved in the design and production of engines for commercial and defense aircraft, along with integrated engine components, electric power systems, and mechanical aircraft systems. The company serves two primary markets, consumer air carriers and the military sector, establishing itself as a leading manufacturer of turbine engines.

With tens of thousands of GE engines operational globally, the ongoing need for maintenance and servicing plays an important role in the company’s business model. This recurring revenue stream constitutes approximately 70% of the company’s overall income, contributing to the stock’s stability across various economic conditions. Management forecasts low double-digit revenue growth through 2028.

In the second quarter, GE Aerospace (NYSE:GE) reported strong performance, with total orders increasing by 18% year-over-year to reach $11.2 billion. Adjusted revenue rose by 4%, totaling $8.2 billion, while profit margins improved significantly, with a 560 basis point increase resulting in a 37% rise in operating profit.

To address expected growth in maintenance, repair, and overhaul (MRO) activities, the company has announced plans for a $1 billion investment over the next five years. Through the investment, it seeks to expand and upgrade MRO facilities worldwide, including a recent agreement to acquire a dedicated LEAP test cell.