We recently published a list of Jim Cramer Discusses Melting Trade Tensions & These 12 Stocks. In this article, we are going to take a look at where RTX Corporation (NYSE:RTX) stands against other stocks that Jim Cramer discusses.
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.”
Overall, RTX ranks 7th on our list of stocks that Jim Cramer discusses. While we acknowledge the potential of RTX as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.
Hedge Fund Resource Center