In this article, we will discuss: Jim Cramer’s Hottest Defense Technology Stock Picks. For more stocks, you can head to Jim Cramer’s Hottest Defense Technology Stock Picks: Top 5 Stocks.
With the US operation in Iran in full swing, defense stocks are back in the spotlight. Data from the United States Central Command shows that as of March 23rd, forces have struck more than 9,000 targets in Iran courtesy of more than 9,000 flights. Assets employed by CENTCOM include B Series bombers, such as the B-1, B-2, and B-52, and F Series fighter jets such as the F-18, F-22, and the F-16. Owing to its impact on the market, CNBC’s Jim Cramer hasn’t held back on commenting on the conflict either. In a recent tweet, the TV host commented that there was a strange divergence where the price of crude oil said that “the war is winding down” while the “S&P futures say be cautious.”
Before the war, Paul Marino, Chief Revenue Officer at Themes ETFs, in an appearance on CNBC on January 7th commented that some of the reasons that defense stocks could perform well included the fact that “the US is far advanced from everybody else and they are going to put their foot to the metal because they want to take control of the Western hemisphere and assert themselves.” He added that “every other nation that is in control of their own defense now, in Europe, has to step up their game. And they’ve got to shorten that gap in what they could do from a military standpoint.” Consequently, he predicted that “we think there’s a long runway for defense and aerospace stocks. And we think there’s a lot more room to run over the next three, five, maybe even ten years.”
Our Methodology
To make our list of Jim Cramer’s hottest defense technology stock picks, we made a list of defense stocks that he was optimistic about in 2025. Then, their performance since the comments were made was calculated, and the stocks were ranked accordingly. Additionally, the number of hedge fund investors back then was also mentioned. Finally, the number of investors as of the fourth quarter of 2025 was also mentioned for additional context.
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 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).
13. Honeywell International Inc. (NASDAQ:HON)
Number of Hedge Fund Holdings in Q4 2024: 67
Number of Hedge Fund Holdings in Q4 2025: 79
Performance Since Cramer’s Remarks: 18.9%
Date/Month of Cramer’s Remarks: April 4th, 2025
Honeywell International Inc. (NASDAQ:HON) is a major defense contractor through its aerospace business, which is due to be spun off later this year. The shares are up by 11% over the past year and by 18.9% since Cramer discussed the firm on Mad Money. Honeywell International Inc. (NASDAQ:HON)’s shares closed 5% higher on April 29th after the firm reported its first quarter earnings report. The results saw the firm raise its profit forecast by $500 million at a time when investors were wondering about the impact of tariffs. Overall, Honeywell International Inc. (NASDAQ:HON) posted $9.82 billion in revenue and $2.51 in profit per share to beat analyst estimates of $9.59 billion and $2.21. However, more recently, the shares struggled in the aftermath of the US operation in Iran. The shares dipped by 1.3% on March 17th after Honeywell International Inc. (NASDAQ:HON) warned that it would face shipping disruptions in the Middle East. Cramer was confident in April 2025 that the firm was undervalued:
“Jeff and I talked about this endlessly, up 16 today by the way. We think the stock is dramatically undervalued. We think that Vimal Kapur is doing everything right. We could not believe how low the stock got. I am a firm believer and a buyer of Honeywell even at these levels. Yes. I like it that much. It was down 8% last week. That’s nutty.”
12. AeroVironment Inc. (NASDAQ:AVAV)
Number of Hedge Fund Holdings in Q3 2024: 22
Number of Hedge Fund Holdings in Q4 2025: 40
Performance Since Cramer’s Remarks: 25%
Date/Month of Cramer’s Remarks: January 10th, 2025
AeroVironment Inc. (NASDAQ:AVAV) is a robotic systems company that operates in the defense industry through its drone business. Its shares are up by 55% over the past year and by 25% since Cramer discussed the firm on Mad Money. Its shares closed a whopping 21% higher on June 25th after the firm reported its fourth quarter earnings report. The results saw AeroVironment Inc. (NASDAQ:AVAV) post $275 million in revenue and $1.61 in profit per share to beat analyst estimates of $241 million and $1.39. The shares jumped by another 9% in October start, after the firm held its analyst day. More recently, AeroVironment Inc. (NASDAQ:AVAV)’s stock closed 4.3% higher earlier this month after Raymond James upgraded the firm to Market Perform from Underperform and pointed towards improved backlogs and a gap between expectations for the firm and its performance. Here’s what Cramer had said about AeroVironment Inc. (NASDAQ:AVAV) in January 2025:
“Oh boy, I really like it. It really is the solution, I think, in a lot of ways to a Pentagon budget that may be too bloated but needs to be more effective. I like AVAV and I gotta tell you, Wahid Nawabi, he’s been on the show and every time he’s been a star.”
11. Northrop Grumman Corporation (NYSE:NOC)
Number of Hedge Fund Holdings in Q4 2024: 54
Number of Hedge Fund Holdings in Q4 2025: 62
Performance Since Cramer’s Remarks: 25.8%
Date/Month of Cramer’s Remarks: April 17th, 2025
Northrop Grumman Corporation (NYSE:NOC) is one of the largest defense contractors in America. The firm makes and sells equipment such as aircraft, radars, and missile defense systems. Northrop Grumman Corporation (NYSE:NOC)’s shares are up by 37% over the past year and by 25% since Cramer discussed the firm on Mad Money. Northrop Grumman Corporation (NYSE:NOC)’s shares closed 12.7% lower on April 22nd, 2025, on the day the firm reported its fiscal first quarter earnings report. The results saw the firm post $6.06 in profit per share, which missed analyst estimates of $6.26. As part of the release, Northrop Grumman Corporation (NYSE:NOC) outlined that it had incurred losses on its B-21 stealth bomber program that led it to cut its annual profit per share guidance to $24.95 and $25.35 from an earlier 27.85 to $28.25. The shares closed 6% higher on March 2nd after the US started its military operation in Iran. Cramer was quite optimistic about Northrop Grumman Corporation (NYSE:NOC) in April 2025:
“I’ve been liking the defense stocks lately because if our trading partners want better treatment from the Trump administration, the traditional go-to move is to go buy some planes and go buy some military hardware. Northrop Grumman, RTX, and Lockheed Martin all report on Tuesday morning. I think each one can be bought.”
10. Lockheed Martin Corporation (NYSE:LMT)
Number of Hedge Fund Holdings in Q4 2024: 65
Number of Hedge Fund Holdings in Q4 2025: 59
Performance Since Cramer’s Remarks: 32.8%
Date/Month of Cramer’s Remarks: April 17th, 2025
Lockheed Martin Corporation (NYSE:LMT) is a crucial American defense contractor that is primarily responsible for manufacturing leading-edge stealth fighter aircraft. Its shares are up by 38% over the past year and by 32% since Cramer discussed the firm on Mad Money. The stock closed 10.8% lower on July 22nd on the day Lockheed Martin Corporation (NYSE:LMT) reported its second quarter earnings report. As part of the release, the firm posted $342 million in profit, which marked an 80% drop due to a $1.6 billion charge stemming from a classified aeronautics program. Lockheed Martin Corporation (NYSE:LMT)’s stock closed 4% higher on January 29th as it forecast 2026 profit and earnings higher than what analysts had expected. Here’s what Cramer said about Lockheed Martin Corporation (NYSE:LMT) in April 2025:
“I’ve been liking the defense stocks lately because if our trading partners want better treatment from the Trump administration, the traditional go-to move is to go buy some planes and go buy some military hardware. Northrop Grumman, RTX, and Lockheed Martin all report on Tuesday morning. I think each one can be bought.”
9. Howmet Aerospace Inc. (NYSE:HWM)
Number of Hedge Fund Holdings in Q1 2025: 56
Number of Hedge Fund Holdings in Q4 2025: 71
Performance Since Cramer’s Remarks: 33.9%
Date/Month of Cramer’s Remarks: July 1st, 2025
Howmet Aerospace Inc. (NYSE:HWM) caters to the defense industry by providing engine components, fasteners, and other items. Its shares are up by 73% over the past year and by 33% since Cramer discussed the firm in April. Howmet Aerospace Inc. (NYSE:HWM)’s stock closed 12% higher on February 12th, on the day the firm reported its fiscal fourth quarter earnings report. As part of the release, the firm guided its first quarter profit per share to sit between $1.09 to $1.11, which was higher than the analyst estimate of $1.02. Howmet Aerospace Inc. (NYSE:HWM)’s first quarter revenue and profit per share were $2.17 billion and $1.05 which beat analyst estimates of $2.13 billion and $0.97. However, the shares had closed 6.4% lower on July 31st following the firm’s fiscal second quarter earnings report, with the dip coming due to conservative guidance, according to media reports. As for Cramer, he was optimistic about Howmet Aerospace Inc. (NYSE:HWM) in July 2025:
“In third place, we’ve got another familiar name, Howmet Aerospace, that’s a prosaic aircraft component supplier… It’s with a 70% gain in the first half. This one’s straightforward. Howmet’s caught fire because we’ve got a raging bull market in aerospace…
Right now, the demand for new planes is off the charts, but supplies are limited, and we might see even more orders as President Trump conducts his trade negotiations all over the globe because buying a few jets from Boeing is the ultimate olive branch when you’re in a trade war with the United States. Aerospace is just a great place to be. If you don’t have any already, please get yourself some exposure.”
8. BWX Technologies, Inc. (NYSE:BWXT)
Number of Hedge Fund Holdings in Q1 2025: 52
Number of Hedge Fund Holdings in Q4 2025: 64
Performance Since Cramer’s Remarks: 45%
Date/Month of Cramer’s Remarks: June 25th, 2025
BWX Technologies, Inc. (NYSE:BWXT) is one of the most important defense contractors in America since it is the only company that provides the US Navy with nuclear reactors used in aircraft carriers. Its shares are up by 95% over the past year and by 45% since Cramer discussed the firm in June. On August 5th, BWX Technologies, Inc. (NYSE:BWXT)’s stock closed more than 17% higher after the firm reported its second quarter earnings. The results saw the firm’s $764 million in revenue and $1.02 in earnings per share surpass analyst estimates of $708 million and $0.79. Most of the strong performance of BWX Technologies, Inc. (NYSE:BWXT)’s shares in 2025 has been attributed to the surge in enthusiasm for nuclear power stocks, according to media reports. In February 2026, the stock closed higher after the firm’s fiscal fourth quarter earnings report. Here’s what Cramer had said about BWX Technologies, Inc. (NYSE:BWXT) in June 2025 on Mad Money:
“Alright, that’s nuclear. And again, like you know, nuclear, I’m not going to fight anyone who wants to enter a nuclear stock. I’m going to bless it even though it’s up very, very big.”
7. The Boeing Company (NYSE:BA)
Number of Hedge Fund Holdings in Q3 2024: 103
Number of Hedge Fund Holdings in Q4 2025: 114
Performance Since Cramer’s Remarks: 45%
Date/Month of Cramer’s Remarks: April 4th, 2025
The Boeing Company (NYSE:BA) is one of the largest defense contractors in America, courtesy of its presence in the aerospace supply chain. Its shares are up by 7.6% over the past year and by 45% since Cramer discussed them in April. The Boeing Company (NYSE:BA)’s shares closed 9.5% lower on the day the CNBC TV host discussed the firm on Squawk on the Street. April 2025 was a weak month for the stock due to the trade tensions between the US and China, which saw the latter pause the delivery of all jets to its airlines. The Boeing Company (NYSE:BA)’s stock closed 4.4% lower on October 29th, the day the firm reported its third-quarter earnings report. The results saw the firm post $7.47 in loss per share, which was wider than the $4.59 that analysts had penciled in. However, the earnings proved Cramer right as The Boeing Company (NYSE:BA) announced that it was cash positive for the first time in years. The CNBC TV host had predicted that this would be the case, and in April 2025, he had advised viewers not to sell The Boeing Company (NYSE:BA):
“[On BA and CAT being the worst two Dow names] Yeah I know, I mean because of China, although Caterpillar has diversified away from China so much and Boeing has got so many orders it shouldn’t be. Those are both mistakes. Shouldn’t be. Don’t sell those.”
6. RTX Corporation (NYSE:RTX)
Number of Hedge Fund Holdings in Q4 2024: 80
Number of Hedge Fund Holdings in Q4 2025: 79
Performance Since Cramer’s Remarks: 51%
Date/Month of Cramer’s Remarks: April 17th, 2025
RTX Corporation (NYSE:RTX) makes and sells radars, engines, missiles, and other equipment to the military. Over the year, its shares are up by 43%, and since Cramer’s remarks on Mad Money in April 2025, they are up by 51%. On April 22nd, 2025, the shares closed 9.81% lower after the firm warned that President Trump’s Liberation Day tariffs could lead to a $850 million hit to its 2025 profits. On October 21st, RTX Corporation (NYSE:RTX)’s shares closed 7.7% higher after the firm’s third-quarter earnings report. The results saw the firm post $22.48 billion in revenue and $1.70 in adjusted profit per share to beat analyst estimates of $21.31 billion and $1.41. Additionally, RTX Corporation (NYSE:RTX) also raised its full-year revenue forecast to $86.5 billion and $87 billion from an earlier $84.75 billion and $85.5 billion. In 2026, the stock closed 4.7% higher on March 2nd after the US started its military operation in Iran. Here’s what the firm had said about the firm in April 2025:
“I’ve been liking the defense stocks lately because if our trading partners want better treatment from the Trump administration, the traditional go-to move is to go buy some planes and go buy some military hardware. Northrop Grumman, RTX, and Lockheed Martin all report on Tuesday morning. I think each one can be bought. But let me tell you something right now, RTX is the one. That’s the best of the lot.”
While we acknowledge the potential of RTX to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than RTX and that has 100x upside potential, check out our report about the cheapest AI stock.
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