RTX Corporation (NYSE:RTX) was among the stocks on Jim Cramer’s radar on Mad Money. A caller sought Cramer’s opinion of the stock, and he replied:
Well, I mean, hey, RTX is down very big… RTX is a monster right here, and I’d buy it aggressively. It’s down a lot. It makes no sense. It’s because there’s not enough aircraft servicing because people feel that people aren’t going to fly anymore. Wrong.
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RTX Corporation (NYSE:RTX) makes aerospace and defense systems for commercial, military, and government customers. The company builds aircraft engines, avionics, and defense technologies, and also provides maintenance, training, and support services. Cramer discussed the company’s earnings results on April 21, as he said:
Next, how about RTX? They posted an excellent set of results, too. Also beating expectations on every key line… All three of the company segments, which are fairly evenly sized, beat sales and operating profit expectations… Unlike GE Aerospace, RTX did raise some lines of its full-year forecast… Maybe that partial guidance raise is why RTX held up a little better than GE today. But still, they reported an amazing quarter, and the stock got clobbered anyway, probably because investors were hoping for even more of a boost. That’s unrealistic, unrealistic. As I’ve mentioned before, much of the focus for RTX is about what the company’s doing to grow its capacity, especially for the defense side of the business. That was still the case today…
I mean, that’s exactly what we want to see. Now, don’t forget, RTX should have years of upside here as one of the nation’s leading producers of missiles… Management also said they’re working with the Department of War to accelerate munitions production. And so far, that’s gone well. RTX has already reached deals to boost production of certain missiles… The company’s CEO, Chris Calio, talked about huge demand from around the globe, not just the U.S.
I was incredibly impressed. One last point: RTX spent a lot of time on this conference call talking about its Coyote counter-UAS system. As we’ve been telling you, drones are playing an outsized role in modern warfare, and the Coyote from RTX is one of the leading counter-drone systems that’s been developed for our military… This is exactly what we need to deal with countries like Iran that love to lob tons of cheap drones at us and our allies.
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