Jim Cramer - Mad Money GE Aerospace GE-NE COMMENT Jan 17, 2025

Controls a lot of the commercial flight market, drives a lot of its growth. Very few competitors. Highly technical. Installed base for engines is very high -- they don't get changed willy-nilly, but they do need servicing as they age. Lowered debt. Once flying gets back to normal after Covid, opportunity to be more than it is presently.

Depends which part of the company you want to own when it splits into 3. Aerospace sector has done very well. He owns HEI, and so wouldn't own GE due to stock correlation. Demand for components will still be great. You can hold, and just sit back and let it do what it's supposed to do.

Up 22% last month. Delivered blow-out earnings and issued a strong forecast, raised their dividend by 30% and started a $7 billion buyback. It has been climbing, supported by steadily improving numbers, which he expects to continue. The CEO is doing a great turnaround job.

It took a long while for her, but shares now keep rising. Hold, don't chase it now.

Quality, long-cycle industrial. Airplane engines that go into the new generation of planes, but also the older generation that's already flying. Best of both worlds (OEM plus after-market) in a critical part of the value chain. Order book is so long that they control delivery and, so, their future, which is not always true. 

More recession resilient than you'd think, because the building of the planes is more consistent than other parts of the industry. Great management team. Yield is 0.64%.

His premise is to own good and getting better: growing, but you can get multiple expansion as people come to understand what's changing for the better. Powers 3 out of 4 commercial flights with their engines. Engines plus service. Global fleet is as old as it's ever been, partly because waiting for next generation of GE engines (both for commercial and for defense). Defense stocks are on a tear. Long-term secular bull market in travel. Unlikely to be hurt by some major slowdown that doesn't appear to be coming.

70% of revenue is service revenue, with long contracts in place. Reported earnings today, beat the high bar nicely. Guidance is that it'll grow revenue at least double digits over next 3 years, will also return lots of capital to shareholders. Generates a lot of cash it doesn't necessarily need; can be used to buy back shares or increase dividend. Yield is 0.55%.