Cramer on Lockheed Martin: I'm Looking for a Post-Earnings Pullback, Then Buy

Lockheed Martin is set to report second-quarter results on Tuesday.
By Armie Margaret Lee ,

Lockheed Martin's (LMT) - Get Report shares might see a pullback after the security and aerospace company reports second-quarter results Tuesday and that could present a buying opportunity, said Jim Cramer, TheStreet's founder and manager of the Action Alerts PLUS portfolio, which owns Lockheed Martin.

"I'm looking for a selloff and then buy," Cramer said.

The stock, he noted, "has sold off after almost every quarter."

Since Lockheed reported its first-quarter results on April 26, the stock has risen about 13%. The stock on Monday hit an all-time high of $258.29 then traded at around $256.30 in early afternoon, down 0.26% from Friday's close.

Analysts expect Bethesda, Md.-based Lockheed Martin to report second-quarter adjusted earnings per share of $2.93 on revenue of $12.58 billion, according to Bloomberg.

In addition to Lockheed Martin, Cramer said Northrop Grumman (NOC) - Get Report , L-3 Communications (LLL) - Get Report , Raytheon (RTN) - Get Report and Harris (HRS) have been remarkable.

In a Real Money article on Monday, Cramer wrote: "The idea that the U.S. is not defending the rest of the world means the rest of the world has to spend on defense and if you spend on defense you are going to write checks to Lockheed Martin, L-3, Northrop Grumman, Harris and Raytheon."

Analysts expect Northrop Grumman, which is set to unveil second-quarter numbers on July 27, to report adjusted EPS of $2.53 on revenue of $5.97 billion.

For L-3, analysts are forecasting second-quarter adjusted earnings of $1.69 a share on revenue of $2.49 billion. For Raytheon, analysts expect adjusted EPS of $1.66 on revenue of $5.83 billion. L-3 and Raytheon are scheduled to announce results on July 28.

Analysts expect Harris to report fiscal fourth-quarter earnings of $1.43 a share on revenue of $1.94 billion.

In early afternoon on Monday, shares of Northrop Grumman were cdown 0.19%, L-3 shares were trading down 0.31%; Raytheon shares were trading down 0.18% and Harris shares were trading flat.

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