Jim Cramer Discusses Melting Trade Tensions & These 12 Stocks

7. RTX Corporation (NYSE:RTX)

Number of Hedge Fund Holders In Q4 2024: 79

RTX Corporation (NYSE:RTX) is one of the biggest defense contractors in America. The firm’s shares have gained 19% year-to-date after recovering from a massive 9.8% dip in May after it warned about a $850 million tariff hit. RTX Corporation (NYSE:RTX) has benefited from a potential agreement between the US and EU which could see Europe increase its defense spending and buy products from the firm, particularly for use in the Russia-Ukraine war. Cramer also discussed  in this context:

“And I think the EU may end up lining up with the President, cause he’s the President and the next thing you know we have a deal and we’re now providing missiles and RTX is a solid buy. And these big tech stocks will not be taxed. . .”

In a previous appearance, the CNBC host had also analyzed RTX Corporation (NYSE:RTX)’s latest financial results in detail after they were released. Comparing the figures to GE’s, he commented:

“As with GE, RTX had a solid earnings beat for the first quarter and unlike GE, they were able to pair that with a solid revenue beat. Also, like GE, RTX reiterated its full-year forecast, but there was a catch. The company said explicitly that their outlook did not incorporate the impact of the recently enacted tariffs. Did not. Now, there’s a world of difference between these two forecasts, then. Reiterating your guidance without baking into the tariffs is a de facto guide down. On the conference call, management went into detail about the impact of tariffs. They’re talking about a potential $850 million hit to profits from the tariffs already in place.

And then management added that these estimates don’t include secondary tariff-related impacts, such as changes to customer demand. These secondary impacts are also pretty important too. Personally, I like the first quarter numbers from RTX, and I applaud management for their transparency. But boy, oh boy, the market did not agree with that. RTX saw its stock fall $12 and 37 cents, nearly 10%, in response to the quarter this morning. Wow. I gotta tell you, I’m all over this one. I think there’s more to it than that.”