Was Jim Cramer Right About These 12 Stocks?

5. Howmet Aerospace (NYSE:HWM)

Number of Hedge Fund Investors: 58

Cramer saw Howmet Aerospace (NYSE:HWM) as a clear winner in the rate-cut environment. He said:

“Both RTX and Howmet are screaming higher because, as the team from Howmet mentioned on their conference call, aerospace is indeed cyclical.”

Cramer pointed out that the aerospace industry relies on borrowed money to finance airplane purchases, making it highly sensitive to interest rate changes.

“The industry benefits from lower rates because businesses buying airplanes often do it with borrowed money, so rate cuts are vital for them. They help travellers too, so there will be a lot of demand for planes from airlines.”

His view was that Howmet was benefiting from strong tailwinds, and with interest rates expected to drop, the stock had more room to run.

And he was spot on. 7 months later and the stock is up 42% since he made that call.