Jim Cramer: This Industrial Stock Goes Down When Crude Oil Goes Higher
Key takeaways
- Boeing’s stock is likely to stay on the sidelines until oil prices break $200, while AADX and TER face headwinds from earnings and cooling demand.
- AADX Q2 loss $1.04 per share
- TER price target $420
- Boeing Q2 adjusted loss 76¢ per share
What happened
Jim Cramer on CNBC’s "Mad Money Lightning Round" highlighted that Applied Aerospace & Defense (AADX) posted a Q2 loss of $1.04 per share, Teradyne (TER) is cooling off, and Boeing (BA) tends to fall when crude oil prices rise. He noted Boeing’s Q2 adjusted loss of 76¢ per share versus a 30¢ estimate, with revenue up 8% YoY to $24.56 billion.
Why it matters
The comments suggest that AADX’s profitability is deteriorating, TER’s momentum is weakening, and BA’s stock is sensitive to oil price swings—key signals for investors watching industrial and defense‑sector exposure.
Short-term and longer-term
Short-term. Short‑term traders should watch oil futures for a $200 break, as Boeing could rally if that threshold is breached.
Longer-term. Long‑term investors may view Boeing’s sensitivity to oil as a risk factor in its defense contracts, while AADX’s loss signals a need to reassess its cost structure.