Cramer sees upside in Boeing after stock pulled back on new 737 Max issue

• CNBC's Jim Cramer recommended investors buy Boeing after shares pulled back due to a temporary grounding order on some 737 Max jets.
• "Even with some short-term turbulence, Boeing's perfectly positioned as the great reopening goes into full swing," the "Mad Money" host said.
• "Boeing's got too much going for its shareholders to get spooked by a bad headline," he said.

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CNBC's Jim Cramer advised buying the dip in Boeing after shares traded lower for two straight sessions.

"Even with some short-term turbulence, Boeing's perfectly positioned as the great reopening goes into full swing," the "Mad Money" host said Monday.

Dozens of 737 Max jets, manufactured by Boeing, were temporarily grounded Friday to address an electrical power system issue in the aircraft. Boeing shares have declined 2% since the announcement, closing below $250 a share Monday.

Cramer, however, said the circumstances do not warrant dumping the stock as Boeing is at an inflection moment.

"Boeing's got too much going for its shareholders to get spooked by a bad headline," he said. "I regard that today's decline on some negative sell-side research about corporate governance as a non-issue, too."

Boeing's 737 Max returned to service late last year after it was grounded globally in the wake of two fatal crashes that killed hundreds of people.

Air travel demand is rising as consumers become less worried about contracting coronavirus. Meanwhile, airlines are ordering more planes, which can be financed at low-interest rates, Cramer said. Southwest Airlines, for example, announced last month it was buying 100 units of the smallest Max model.

"This small issue aside, the 737 Max really is back. See, this used to be Boeing's most popular plane and it got recertified right as the airlines were getting ready to start placing orders again in anticipation of the great reopening," he said.

"That's why we own this one for the charitable trust and so far our thesis is playing out as expected."

Despite selling off over the past four weeks, Boeing shares are up more than 16% this year. The stock is outperforming the S&P 500, which is up 10% year to date.

Disclosure: Cramer's charitable trust owns shares of Boeing.

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