NEW YORK (TheStreet) - As the stock market wraps up a record-breaking year, TheStreet's Jim Cramer has selected 12 sectors where he thinks investors should put their money.
Among them is defense. Defense stocks are up nearly 7% this year as measured by the S&P Aerospace & Defense Select Industry Index while the S&P 500 is up 11%. In each of Cramer's 12 sectors, "you can almost throw darts and win with a couple of rare exceptions," he wrote in Here Are 12 Sectors to Bet On on the Real Money Web site.
Must Read: Jim Cramer's 4 Best Stock Picks for the Health Care Sector
"With the Senate going Republican and a wartime Secretary of Defense coming, this is a moment where any defense stock's going to win because it is inconceivable to most investors that the defense budget gets restored to pre-sequester levels," Cramer wrote.
We've listed Cramer's picks alongside the TheStreet Ratings, TheStreet's proprietary stock rating tool which projects a stock's total return potential over a 12-month period including both price appreciation and dividends. Based on 30 major data points, TheStreet Ratings uses a quantitative approach to rating stocks. The model is both objective, using elements such as volatility of past operating revenues, financial strength, and company cash flows, and subjective, including expected equities market returns, future interest rates, implied industry outlook and forecasted company earnings.
Cramer's analysis and that of TheStreet Ratings may differ as Cramer may evaluate stocks without regard to time horizon, while TheStreet Ratings uses consensus estimates for the next 12 months only. In addition, changes in TheStreet Ratings may lag Jim Cramer's analysis, as consensus estimates may take some time to change meaningfully.
Cramer made three "dart throws" in the defense sector. Keep reading to see Cramer's top pick for defense.
Must Read: Cramer's Favorite Biotech Stocks