On Thursday, CNBC's Jim Cramer pointed out that GE Aerospace's stock fell over 4% following its second-quarter earnings report, which exceeded expectations and included an improved full-year outlook.
Despite this decline, Cramer believes that the stock is undervalued, especially given the company's reported 17% increase in orders, even though this was a decrease from the previous quarter's 87% growth. He noted that the aerospace sector often experiences fluctuating order patterns and emphasized that GE Aerospace's backlog has grown to over $210 billion, indicating strong demand.
Cramer acknowledged that the company's guidance suggests slower revenue growth in the latter half of the year but suggested that GE has a history of conservative forecasts, which could lead to better-than-expected results.
He also praised management's initiatives to enhance manufacturing efficiency and address supply-chain issues, making the current stock price a potential buying opportunity for investors looking for growth outside the tech sector