The holidays are getting closer and more people are booking flights to their dream destinations. This should be a good time for airlines and airlines. That’s why on Tuesday, October 27, CNBC’s Jim Cramer recommended buying major aerospace stocks now, as well as another stock he thinks will need more time to recover.
He suggested that the stocks the audience should buy now are General Electric Aerospace (GE), while the stock he thinks will take longer to recover is boeing company (Bachelor of Arts). One thing these two stocks have in common is that both companies fell after reporting earnings this month. However, Cramer sees falling shares as a good opportunity to buy both companies.
Why Cramer remains bullish on GE Aerospace after selloff
GE Aviation and Space’s stock is worth About $389 per share August 6, 2026, but it has down about 23% since then. The stock’s decline was largely due to rising jet fuel prices and rising interest rates, which have made airlines wary of ordering new planes.
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Then GE Aerospace released its third-quarter report this month, and one of the numbers gave investors more reason to sell. The company reported a 14% decline in free cash flow from the year-earlier period, which is concerning when the company trades at a price-to-earnings ratio of about 37 times. However, even with the lack of free cash flow, GE’s commercial engine and service orders increased 58%its equipment orders increased 235%the company’s commercial services backlog grew to $170 billionbased on the company’s earnings.
Those strong numbers are why Cramer said the decline was too steep. He even told viewers that “GE’s post-earnings pullback creates a buying opportunity,” singling out the engine business as a reason to be patient.
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Boeing’s slow recovery and what it means for investors
boeing company A drop of more than 10% October 27 alone caused it to hit a new 52-week low. The share price fell after the company announced it was reducing its cash flow outlook for the next few years.
Subsequently, Boeing CEO Kelly Ortberg said that the production line is currently targeting 47 aircraft per month by early 2027, which is delayed from the company’s original schedule, adding pressure to Boeing’s management. The CEO said the significant growth of 52 aircraft per month will not be achieved until the second half of 2027. That’s significant for investors because the 737 Max is Boeing’s largest source of commercial revenue. So slower growth will mean less cash coming into the business.
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Despite this, however, Cramer is not negative about the company. “We hope this reset will be a reckoning event,” he said. He said the lower forecast could provide the company with opportunities to exceed expectations. Additionally, with the recent approval of the 737 Max 10, one of BA’s investors’ major concerns has been addressed.
More aerospace stocks
- Lockheed just struck one of its biggest defense deals in years
- The US just fined two airlines for restricting Iraqi airspace
- New Boeing MAX 10 with special safety upgrades approved to fly with passengers
On top of that, Boeing’s record order backlog $612 billion and in commercial orders $101 billion Defense orders show customers still want its aircraft. The only challenge the company faces is converting these orders into finished aircraft and actual cash. But even amid the challenges, some Wall Street firms are still backing buy recommendations. Bank of America retains Buy rating There is on the stock Target price $235 October 28th.
What this means for your investment portfolio
GE Aerospace’s pullback is due to a lack of cash flow that investors already know about, and Cramer believes the company’s engine business is still worth the price. Therefore, GE should be a more reliable near-term choice.
Boeing management told shareholders it expected production schedule delays and lowered its free cash flow target. The company already has orders waiting. All it takes is to convert those orders into real cash.
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