“Or maybe, and this was my initial reaction to the weakness on Boeing, we are not seeing a peak in the industry at all,” the “Mad Money” host said.
Instead, Cramer suspects that what is really happening is that Boeing’s major competitor Airbus is getting a boost from the weak euro. With the Fed raising interest rates, the dollar has become stronger. Thus, a plane priced in euros from Airbus would be much cheaper than a plane priced in dollars from Boeing.
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The real issue, according to Cramer, is that Airbus is simply taking business from Boeing. That theory strengthened when United Technologies and Honeywell reported.
The aerospace business accounts for roughly 40 percent of Honeywell’s sales. Honeywell builds the instruments inside the cockpit for almost every plan manufacturer in the world. It was when Honeywell reported that Cramer started to really doubt the idea that the aerospace business is peaking.
Additionally, Boeing CEO Dennis Muilenburg recently took over as CEO of the company.
“It wouldn’t totally shock me if Boeing wanted to lower expectations in order to make it easier for the new guy to deliver,” Cramer said.
In fact, Cramer would be willing to recommend Boeing as a buy if the Federal Reserve provides a signal that it will take its plans for four quick rate hikes off the table.
“Even if Boeing is having a hard time because Airbus has an unfair currency advantage, it’s very clear that the aerospace industry in general is doing just fine,” Cramer said.
Cramer also added that both United Technologies and Honeywell are worth owning right now, and maybe Boeing would be, too, if the dollar stops gaining strength.