Buy, Sell, or Hold? Jim Cramer’s Take on 18 Callers’ Stocks as Crude Oil Prices Climb

8. AeroVironment, Inc. (NASDAQ:AVAV)

Jim Cramer gave top insight on AeroVironment, Inc. (NASDAQ:AVAV), sharing a game plan of what to buy, sell, and hold right now. When a club member asked Cramer for his recommendation of a company with strong drone technology for long-term investment, he said:

The answer is right now, we don’t have one. I like AeroVironment, but they have this contract that’s being contested, and it makes me want to stay away because if they don’t get the contract, this stock’s going to have another leg down.

AeroVironment, Inc. (NASDAQ:AVAV) develops robotic and autonomous systems, including uncrewed aircraft, counter-UAS tools, precision-strike solutions, advanced AI, and autonomy. In addition, the company provides space, cyber, communications, and intelligence systems used in defense and commercial applications. Cramer mentioned the company during the March 6 episode and stated:

We also hear from AeroVironment, and this one’s timely. We have lots of defense stocks just going higher and higher, led by Lockheed Martin. That’s big hardware. By the way, I like RTX, too. If you want drones, though, and I know many of you do, you do buy the stock of AeroVironment. It’s a long-time Cramer fave, but things don’t seem right here.

November of 2024, this company announced a deal to acquire BlueHalo for $4.1 billion to exploit that company’s counter-drone technology as well as its satellite abilities. BlueHalo has a big contract with the Pentagon for satellite work. The stock was pummeled recently, though, when we heard that the contract will be rebid. Now, we gotta find out what’s really happening here. I think AeroVironment has terrific technology, but we need to learn more about BlueHalo because, without that contract, maybe these guys paid too much for the acquisition, and the stock is overvalued. I want to know.