Jim Cramer’s Lightning Rounds: 12 Stocks Under the Spotlight

2. Lockheed Martin Corporation (NYSE:LMT)

Number of Hedge Fund Holders: 58

Referring to Elon Musk’s comments regarding unmanned aerial vehicles versus having a human pilot, a caller asked about Lockheed Martin Corporation (NYSE:LMT). Cramer responded, saying:

“I think he’s right. I gotta tell you… I love Jim Taiclet. I think he’s terrific… I would not touch this thing until it broke $500, but it’s run by Jim Taiclet. He’s really fabulous… but it doesn’t matter at this point.”

Lockheed Martin (NYSE:LMT) is a global security and aerospace company that designs, develops, and manufactures advanced technology systems, products, and services for defense, aerospace, and space applications. It plays a central role as the prime contractor for several of the Pentagon’s most significant projects.

It should be noted that recently, Musk stated that the F-35 design was flawed from the very beginning due to its requirements, and that manned fighter jets are outdated in the era of drones. In a separate post, he criticized the continued development of manned fighter jets like the F-35, referring to it as a foolish endeavor. Additionally, despite its dominant position in the defense industry, the company has recently faced challenges.

In its third quarter, Lockheed Martin (NYSE:LMT) management cited a $480 million loss in sales of its F-35 fighter jets, which they attributed to a reduction in production volumes. This was largely a result of delays in receiving the necessary contractual authorization and funding for additional production contracts.

Additionally, the company’s Aeronautics division saw a decline, primarily due to a delayed revenue recognition of approximately $700 million. This delay stemmed from a lapse in funding for the F-35 program as the company worked through negotiations related to Lot 18 of the fighter jet’s production schedule.