NEW YORK (TheStreet) -- The defense sector has been on a strong run in 2013 and TheStreet's Jim Cramer discussed the sector with "Mad Money" Research Director Nicole Urken.
The duo has been saying to buy Northrop Grumman (NOC) on a pullback. The problem? There hasn't been much of a pullback to buy; with the latest earnings release, there won't be one on Wednesday.
Cramer added that the group has been the top performer in the S&P 500 in 2013, which is pretty impressive considering the index is up over 18% from the start of the year.An important part of the companies' success was the ability to foresee the government sequestration, allowing them to properly position their operations ahead of time, Cramer said. In addition, other countries have increased their orders as the United States started to scale back, which helped improve results. Of course, aerospace has been about as hot as it could be, he noted. While many of these companies have some sort of aerospace tie, Cramer specifically pointed out one that "doubled down" at just the right time. He advised investors to go back and read United Technologies' (UTX) conference call transcript. The company, which reported earnings on Tuesday, has apparently increased its operations in aerospace at the perfect time, allowing it to take advantage of the huge demand that currently exists. Cramer said he loves the defense names, citing the incredibly strong cash flows and dividend payouts that are routinely raised. -- Written by Bret Kenwell in Petoskey, Mich. Follow @BretKenwell
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV