Cramer Quick Take: Northrop Grumman for the Defense
The duo has been saying to buy Northrop Grumman
Northrop, along with other defensive stock leaders including Lockheed Martin
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'
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.