In this article, we will look at “Why Jim Cramer Stands by Defense Sector and 5 Stock Calls”. Please visit “Why Jim Cramer Stands by Defense Sector and 19 Stock Calls“, if you’d like to see the extended list and methodology behind it.
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.
4. RTX Corporation (NYSE:RTX)
RTX Corporation (NYSE:RTX) is among Jim Cramer’s recent stock calls as he urged investors to stand by the defense sector. Cramer was bullish on the stock, as he commented:
The other big name in the missile system is RTX, which is buying some of the most popular missile programs. The Patriot missile is still the gold standard. The SM-3 interceptors, if you have a rocket headed your way, that’s the technology that… You really gotta hope it’s defending you. Now, RTX also makes Tomahawk cruise missiles that our government reportedly is running low on, we had so many of them, after shooting hundreds of them, I think it’s probably more than that, at Iran in the past few weeks. RTX actually had the biggest gains of any prime defense contractor last year. It’s up 58% because the company benefits from both the hot defense market worldwide and an even hotter commercial aerospace market. I still like it here.
RTX Corporation (NYSE:RTX) makes aerospace and defense systems for commercial, military, and government customers. The company builds aircraft engines, avionics, and defense technologies, and also provides maintenance, training, and support services.
3. Lockheed Martin Corporation (NYSE:LMT)
Lockheed Martin Corporation (NYSE:LMT) is among Jim Cramer’s recent stock calls as he urged investors to stand by the defense sector. Cramer mentioned the company while highlighting the growing demand for missile defense systems, as he stated:
First, we want anything and everything related to exposure to missiles. From the war in Ukraine to the perpetual defense of Israel, the latest war in Iran, the common thread has been that we never have enough missiles. There’s an asymmetry here because we’re using million-dollar missiles to shoot down drones that might cost tens of thousands of dollars or less. That’s a long-term problem for our military.
But in the meantime, we desperately need to make more of these interceptors to keep our troops and our allies safe. That’s why I like Lockheed Martin, which is behind some of the… really some of the great defensive missile programs like the Terminal High Altitude Area Defense. You might have seen that as… THAAD. That’s the system we’ve used in the Middle East and also the Aegis BMD system for ballistic missile defense. Lockheed does a ton of business selling missile systems to everyone, as well as selling previous-generation fighter jets to allies.
Lockheed Martin Corporation (NYSE:LMT) designs and maintains aircraft, missile systems, and helicopters for government and military use. The company also produces satellites, naval vessels, and cybersecurity tools.
2. Shake Shack Inc. (NYSE:SHAK)
Shake Shack Inc. (NYSE:SHAK) is among Jim Cramer’s recent stock calls as he urged investors to stand by the defense sector. A caller asked how to know whether to buy, sell, or hold the stock. In response, Cramer said:
I’ve gotta tell you, here’s what you’re missing: Rob Lynch runs Shake Shack now. Shake Shack was not run the way I would’ve liked it. Rob Lynch is a winner… The reason why you would stay with it is because of a fundamental change at the company. And in this particular case, call me bullish.
Shake Shack Inc. (NYSE:SHAK) operates and licenses a chain of restaurants that serve burgers, chicken, hot dogs, fries, shakes, frozen custard, and beverages. A caller inquired about the stock during the episode aired on December 11, 2025. The Mad Money host replied:
Okay, this is such a great question. Now, you have to understand that Rob Lynch is doing a remarkable job, and he’s a great CEO. Here’s the problem: this stock is trading with the price of beef and cattle, went up and up and up. I think the president’s going to try to bring cattle down. I think that means you buy Shake Shack. I think it doesn’t matter where a stock comes from, it matters where it’s going to. I would never bet against Rob Lynch. I think that you buy Shake Shack at $79 a share.
1. Lyft, Inc. (NASDAQ:LYFT)
Lyft, Inc. (NASDAQ:LYFT) is among Jim Cramer’s recent stock calls as he urged investors to stand by the defense sector. A caller asked what Cramer thinks of them getting back into the stock. He replied:
The best one yet, we talked about this with the guys, the best one yet, and I have to tell you, I’m an Uber guy. I’m an Uber guy. I love David Risher; we know that. But I think that Uber’s very, very cheap right here.
Lyft, Inc. (NASDAQ:LYFT) operates a platform that connects drivers and riders for on-demand transportation. Cramer shared his insights on the stock during the October 16, 2025, episode, as he remarked:
So far this year, we’ve seen a spectacular more than 50% rally in Lyft, the number two ride-sharing platform that’s finally getting its due after years of sideways trading. I suspect it’s got more room to run.
While we acknowledge the potential of LYFT 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 LYFT and that has 100x upside potential, check out our report about the cheapest AI stock.
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