Benzinga - by Benzinga Neuro, Benzinga Staff Writer.
Jim Cramer, a renowned CNBC host, suggests investing in defense stocks as the U.S. intends to reestablish its arsenal capacity.
According to a report on CNBC, Cramer argues that defense companies present worthy investment opportunities as the U.S. depletes its arsenals to assist allies Israel and Ukraine. He highlighted this during an interview with Greg Hayes, CEO of Raytheon Technologies Corporation (NYSE:RTX).
Hayes pointed out that the U.S.’s primary concentration on fighting terrorism in the past two decades has limited its capacity to supply land wars in both Ukraine and the Middle East. Cramer concurred, adding that the U.S.’s insufficient land war-making capacity weakens its arsenal of democracy.
He anticipates that either the White House or Congress will alter how defense budgets are managed, making the large defense contractors investable. Cramer listed several major defense contractors set to profit from a Pentagon push. These include Lockheed Martin Corporation (NYSE:LMT), Raytheon Technologies Corporation (NYSE:RTX), Boeing Co (NYSE:BA), Northrop Grumman Corporation (NYSE:NOC), and General Dynamics Corporation (NYSE:GD).
Cramer also highlighted L3Harris Technologies Inc (NYSE:LHX) as potentially the best investment due to its acquisition of rocket motor maker Aerojet Rocketdyne, whose engines are used in various modern munitions.
He stressed the need for the U.S. to rebuild its arsenal as soon as possible in response to an increasingly chaotic world, adding that this is crucial for defense production and must happen domestically.
Read Next: Did Matt Gaetz Put A Knife In The Cannabis Industry
Image via Shutterstock
Engineered by
Benzinga Neuro, Edited by
Pooja Rajkumari
The GPT-4-based Benzinga Neuro content generation system exploits the
extensive Benzinga Ecosystem, including native data, APIs, and more to
create comprehensive and timely stories for you.
Learn more.
Latest Ratings for LMT
Mar 2022 | Wells Fargo | Maintains | Equal-Weight | |
Mar 2022 | Morgan Stanley | Maintains | Overweight | |
Feb 2022 | Wolfe Research | Upgrades | Peer Perform | Outperform |
View the Latest Analyst Ratings
© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.