Jim Cramer -- Watch for Lockheed Martin Pullback on Earnings, Then Buy

If Lockheed shares pull back on earnings, that's a buying opportunity, Cramer says of the Action Alerts PLUS holding.
By Bret Kenwell ,

Lockheed Martin (LMT) - Get Report shares are down very slightlly on Monday ahead of the company's scheduled second-quarter earnings Tuesday morning.

"Lockheed Martin has sold off after almost every quarter," TheStreet's Jim Cramer, co-manager of the Action Alerts PLUS portfolio, said from the floor of the New York Stock Exchange

The company's helicopter business remains impressive and CEO Marillyn Hewson is "remarkable," he said. But since he knows the stock goes down after earnings, Cramer will still be on his guard with the Action Alerts PLUS holding.

"I'm looking for a selloff," he said. Then he wants you to start buying. The stock is roughly $30 per share higher from when it last reported earnings, he added.

The world needs defense stocks, Cramer explained. In the sector, Lockheed Martin is a great performer, as are L-Communications (LLL) - Get Report , Raytheon (RTN) - Get Report and Northrop Grumman (NOC) - Get Report .

Analysts expect Lockheed Martin to earn $2.93 per share on $12.56 billion in revenue. Shares are up 18% on the year.

Lockheed Martin is a holding in Jim Cramer'sAction Alerts PLUS Charitable Trust Portfolio. Want to be alerted before Cramer buys or sells LMT? Learn more now.

At the time of publication, Cramer's Action Alerts PLUS had a long position in LMT. 

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