General Electric - 'I Feel Great About It,' Cramer Tells Action Alerts PLUS Members

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General Electric (GE) - Get Report has been showing strong sell signals for years as the company realigns following numerous cost-cutting measures designed to trim the fat around the industrial giant's core businesses.

Those signals have flipped as General Electric's new CEO is restoring credibility to the stock, said Jeff Marks, senior analyst at Action Action Alerts PLUS, on the club's members-only monthly call.

“It starts with the turnaround that CEO Larry Culp is really putting in place here. So the company reported not too long ago really strong numbers, and what really struck me the most in what was expected to be a reset year for the company, the year where Larry Culp had to make so many tough decisions, divesting the assets, just really trying to get his handle on things, the company met or exceeded all of the key metrics in its initial financial framework,” Marks said.

The effect of the moves was to put credibility back into the company’s financials after a long stretch of time when GE lacked that credibility. Some of GE’s credibility rehabilitation also hinges on Boeing (BA) - Get Report regaining its own good standing.

“At General Electric, I think that Culp will make it so that the aviation is a great growth business. Once he fixes that balance sheet, he can start buying things,” Cramer said. “It is going to be monumental when you get Boeing back for them.”

Cramer added, "So I think what we're really going to finally see here is GE transition from a period of playing so much defense into one of offense."

"I feel great about it,' he also told AAP members.

Action Alerts PLUS initiated a position in General Electric earlier in February.

Shares of GE have risen more than 35% over the past 12 months. 

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