Why Jim Cramer Stands by Defense Sector and 5 Stock Calls

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5. L3Harris Technologies, Inc. (NYSE:LHX)

L3Harris Technologies, Inc. (NYSE:LHX) is among Jim Cramer’s recent stock calls as he urged investors to stand by the defense sector. Cramer explained why it has become one of the “top defense companies over the last decade,” as he said:

The last idea I’ll give you is a little less obvious, but it’s one I’ve championed for a long time. It’s L3Harris Technologies. This has become one of the top defense companies over the last decade, scaling up to a series of acquisitions and mostly operates in pretty quiet, unassuming areas: communication systems, space, electronic warfare products, intelligence, surveillance, reconnaissance programs.

But I think L3Harris fits here because about three years ago, in a really stunning move, they bought a company called Aerojet Rocketdyne. It’s a major purveyor of propulsion systems, including for missiles. Obviously, L3Harris is a great company. They’ve got some counter-drone products like VAMPIRE system that’s in high demand. But that Aerojet Rocketdyne deal looks better and better now that we need to rebuild practically our entire missile stockpile. You see the theme here: we just don’t have enough missiles.

L3Harris Technologies, Inc. (NYSE:LHX) provides defense and government equipment, including satellite payloads, missile propulsion, and hypersonic systems. In addition, the company supplies tactical communication tools and field gear such as night-vision goggles, aiming lasers, and rangefinders.