Jim Cramer’s Thoughts on These 13 Stocks

4. RTX Corporation (NYSE:RTX)

Number of Hedge Fund Holders: 80

Highlighting that the company only buys 65% of its products from the USA and is projecting a billion dollars in tariff expenses, a caller inquired about RTX Corporation (NYSE:RTX). Here’s what Cramer had to say:

“Oh my god, you know, you actually nailed the story. First of all, they were very forthcoming about the tariffs. That was right. Second, it is a way for people, for countries to be able to say, listen, I know we have a trade, we have a huge trade surplus with you. We are going to write a check to RTX and get what we need. You are spot on.”

RTX (NYSE:RTX) delivers systems and services used in commercial, defense, and government applications. The company works on aircraft engines, aerospace technologies, and threat detection tools. On April 22, Cramer extensively commented on the company as he said:

“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.”