Aerospace: Easy as RBC
Cramer is bullish on aerospace stocks because when airlines go bankrupt, people "throw money at them," said Cramer. Airlines then buy planes with that money, which means you can do well buying the stocks of Boeing (BA - Get Report), Honeywell International (HON - Get Report), BE Aerospace (BEAV - Get Report), United Technologies (UTX - Get Report) or Precision Castparts (PCP - Get Report), said Cramer.
But, an under-the-radar play Cramer likes is RBC Bearings (ROLL - Get Report). RBC makes ball bearings for use in the aerospace and defense industries (among others), two industries that are in bull market mode, said Cramer. The stock came public in August and is just up modestly since then, he said, but reported 17% revenue growth in its last-reported quarter, much of that growth from aerospace and defense, said Cramer.
In response to a question about a play on avionics systems upgrades, Cramer said he liked Aviall (AVL) but cautioned the stock is very near its 52-week high. He would let it come down a little before buying.Commenting on Timken (TKR - Get Report), Cramer said Timken was the "king of ball bearings" and is a great company. However, Timken is very well known, said Cramer, which is why he likes RBC Bearings better at this time.