Cramer calls GE Vernova and Boeing undervalued after earnings reactions

Jim Cramer identified two beaten-down stocks as potential buys during the CNBC Investing Club's morning meeting.

Cramer focused on GE Vernova and Boeing, arguing that market reactions to recent earnings reports were overly negative.

GE Vernova reported nearly doubled orders and raised its guidance for the current year.

The company announced a $9 billion acquisition of Trench Group, a maker of high-voltage equipment.

GE Vernova also doubled its share repurchase authorization to $20 billion.

Shares fell after executives suggested power orders could moderate in 2027.

Cramer said the sell-off was unwarranted given the company's strong backlog and profitability.

He noted that management expects visibility into demand through 2031 and 2032.

Cramer stated that customers are not canceling projects due to financing concerns.

He described the quarter as beautiful and the stock price as wrong.

Cramer told investors who missed the initial buy around $820 that the current level offers another opportunity.

Boeing shares declined for a second day following a steep 10.7% drop on Tuesday. The decline followed a third-quarter earnings call where management outlined a multiyear free cash flow outlook. The outlook fell short of expectations due to upfront spending on a new U.S. Navy fighter jet contract. Executives stated that 737 Max production would not ramp up significantly until late next year. Cramer said investors are overlooking Boeing's longer-term potential in the defense sector. He described the situation as an amazing opportunity to buy an iconic company. The market is currently focused on the Federal Reserve's decision on interest rates. Central bankers are expected to hold rates steady at Wednesday's meeting. Investors are listening to Fed Chairman Kevin Warsh for signals of additional hikes. The CME FedWatch tool shows a 78% probability of a rate increase in December. Cramer said uncertainty over rates, midterms, and oil is keeping the market in a holding pattern. He emphasized maintaining a roughly 15% cash position to buy opportunities. Cramer's Charitable Trust is long Alphabet, Microsoft, Boeing, GE Vernova, Eli Lilly, and Linde.