We recently published a list of 10 Jim Cramer Stocks to Watch This Month. In this article, we are going to take a look at where Lockheed Martin Corporation (NYSE:LMT) stands against other stocks that Jim Cramer discusses.
Jim Cramer recently talked about the market selloff and how years of profits are lost within days when panic hits the market:
“They wipe out these gains pretty easily, don’t they? Just like that, the sellers take away months, if not years, of profits because they want to get ahead of a potential recession. And then they swap into the safety stocks that thrive in a slowdown. Welcome to the world of recession preparation, where it doesn’t matter what prices you get on the sales or the buys as long as they get done.”
Cramer said that while he agrees with the broader tariff policies of President Trump, he does not like the “way” he’s implementing them.
“I don’t think that Trump will start going easier on our trading partners just because the Dow’s been eviscerated. He’s not sacrificing our trade policy on a cross of gold — meaning, of course, higher stock prices. Of course, not many investors saw this coming, and that’s incredible to me. And the shock from Trump’s change in attitude has terrified the moneymen — the big moneymen,” Cramer added.
READ ALSO: 7 Best Stocks to Buy For Long-Term and 8 Cheap Jim Cramer Stocks to Invest In
For this article, we picked 10 stocks Jim Cramer discussed during his programs on CNBC. With each company we have mentioned the number of hedge fund investors. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
Lockheed Martin Corporation (NYSE:LMT)
Number of Hedge Funds Investors: 58
Jim Cramer in a latest program on CNBC said while Lockheed Martin Corporation (NYSE:LMT) became attractive after pullbacks, he believes the new US government is opting for a “Palantir-like” solution for procurement and that will have negative effects for stocks like Lockheed Martin Corp (NYSE:LMT).
“Lockheed Martin is a stock that frankly has come down so much that it’s getting hard for me to dislike it. However, I think the administration is far more focused on the idea of a Palantir-like solution to procurement, and that would be very bad for all the companies you just mentioned. So, I do not want to get in the way of the Palantir buzz saw because that’s very close to Elon Musk, and that’s where I am.”
Delaware Ivy Core Equity Fund stated the following regarding Lockheed Martin Corporation (NYSE:LMT) in its Q3 2024 investor letter:
“Finally, we added Lockheed Martin Corporation (NYSE:LMT) to the portfolio. While demand for the company’s products remains strong as a function of increased defense industry expenditures and a favorable geopolitical backdrop, margins have been impaired by government contracts that were fixed in price before the onset of rapid inflation. We believe the longer-term profit outlook is inflecting as mispriced contracts are replaced by more favorable ones, beginning in 2025. As several observers have noted before, defense companies are a great insurance policy for what you don’t know, a saying that certainly rings true amid escalating conflict across the globe.”
Overall, LMT ranks 3rd on our list of stocks that Jim Cramer discusses. While we acknowledge the potential of LMT, our conviction lies in the belief that under the radar AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than LMT but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
