The President of the US, Barack Obama, is going to deliver an important speech on Wednesday in which he is expected to announce some key developments regarding US’s future policy in the Middle East. In a program on CNBC, Jim Cramer talked about this speech and said that the coming months are going to be important in terms of US military escalations. As a result, the defense stocks are expected to go higher. Cramer mentioned some stocks of weapons manufacturers and predicted that they will become buys in the coming days. These stocks include Alliant Techsystems Inc. (NYSE:ATK), Raytheon Company (NYSE:RTN), and Lockheed Martin Corporation (NYSE:LMT).
Talking about Alliant Techsystems Inc. (NYSE:ATK), Cramer said the company performed extremely well in the last quarter after the Afghan pullback. That quarter was said to be the last good quarter for Alliant Techsystems Inc. (NYSE:ATK) because there was no military activity expected, but the expectations were wrong. With the increase in US’s involvement in the Middle East crisis, Alliant Techsystems Inc. (NYSE:ATK) has high chances to excel in the market.
Next comes Raytheon Company (NYSE:RTN), which is a leader in high-tech hardware according to Cramer. He said that Raytheon Company (NYSE:RTN) has signed a couple of defense deals recently and its last quarter was good as well.
“This war against ISIS is probably going to be waged heavily from the air, and Raytheon Company (NYSE:RTN) makes the tactical radar systems for our current generation of fighter plans, and I think it’s likely to make the radar systems for the next generation bomber that the Pentagon is developing […],” said Cramer.
Third on the list of potential ‘buys’ is Lockheed Martin Corporation (NYSE:LMT), which has been a pronounced bomb maker in the defense market. Cramer said that is Lockheed Martin Corporation (NYSE:LMT) has good revenues and dividends and it will also get a boost in the coming days as the US government prepares to increase its defense budget.
Steve Cohen‘s Point72 Asset Management is one of the stockholders of Alliant Techsystems Inc. (NYSE:ATK), having 340,300 shares of the company so far.