Jim Cramer Gives His Defense Stock Picks Ahead of Obama's Speech

Jim Cramer says as Iraq and Afghanistan wound down, so did interest in defense stocks. Now, he says, they'll be coming back into focus.

Author:: Jim Cramer
Publish date:: Sep 10, 2014 11:45 AM EDT

President Obama is set to deliver a speech Wednesday at 9pm ET in which he will discuss the threat posed by the jihadist group known as the Islamic State as well as outline a plan to take action against the group. The plan is likely to include continued U.S. airstrikes, aid from other nations, military training and counter-terrorism actions. Jim Cramer says as Iraq and Afghanistan wound down, so did interest in defense stocks. Now, he says, they'll be coming back into focus. Cramer likes Alliant Techsystems, Northrop Grumman, Lockheed Martin and Raytheon. He says Alliant is very inexpensive, Northrop has a great buyback, Lockheed has a great yield, and Raytheon has huge operating cash flow and a tremendous business involving missiles and radar.