Cramer says investors should consider buying tumbling aviation giant

Howmet Aerospace (HWM) experienced a significant drop in its stock price following Elon Musk's announcement that SpaceX plans to manufacture its own turbine blades and vanes in-house. The move threatened Howmet's competitive edge, as the company is one of only a few manufacturers of these intricate metal parts used in gas turbines for power generation. However, Jim Cramer on CNBC's Mad Money argued that this was an opportunity for investors, stating that Howmet is the best way to play aerospace.

Cramer cited several factors supporting this outlook, including Howmet's dominant market position in the casting of turbine blades, which covers more than 50% of the market and includes customer agreements running into 2030. The company's gas-turbine revenue increased by 39% in the first quarter of 2025, and it is expanding its blade capacity by up to 38% from early 2025 levels due to multiple projects.

Additionally, Howmet supplies parts for jet engines, which remains a busy business even during production delays in the aircraft industry. Cramer emphasized that the company benefits from strong pricing power and recurring demand for replacement parts, which is independent of how new aircraft deliveries are going.