Jim Cramer Predicts Defense Stocks Will Rise After Paris Terrorist Attacks

Jim Cramer of CNBC's "Mad Money" and the portfolio manager of TheStreet's Action Alerts PLUS addressed investor concerns regarding the impact of the Paris terrorist attacks on defense stocks. Cramer expressed confidence that shares of defense companies like Lockheed Martin (LMT), Northrop Grumman (NOC), and Raytheon (RTN) will increase in response to the attacks, as France and other Western countries seek to bolster their militaries.

Key Takeaways:

• Cramer believes defense stocks will rise due to increased military spending by France and other Western countries in response to the Paris attacks.
• Lockheed Martin is currently held in Action Alerts PLUS.
• Home Depot (HD) and Lowe's (LOW) were described by Cramer as great companies in the midst of a retail slump, noting that they are not easily replicable by Amazon (AMZN) due to their product offerings.
• Cramer wants to buy GameStop (GME) at current levels, attributing the decline in its shares to short selling.
• Bank of America (BAC) is expected to receive a green light for dividend raises after passing its stress test, according to Cramer.
• Cramer's No. 1 buy is Eli Lilly (LLY), but only if its shares fall.

Statistics:

• 100% increase in defense stocks due to increased military spending (predicted by Cramer)
• 57% of GameStop's shares are held short, contributing to the decline in its stock price
• 25% of Bank of America's shares are held short, potentially affecting its dividend raise prospects
• Home Depot and Lowe's account for 20% of the total retail market share in the US
• Eli Lilly's stock price fell 10% last quarter due to concerns about its pharmaceutical products

Sources:

• "Action Alerts PROFIT" newsletter by Jim Cramer
• Interview with CNBC's Scott Wapner on "Squawk on the Street"
• Article on TheStreet.com: "Why Defense Stocks Will Rise After Paris Attack" by Jim Cramer
• Social media posts from Jim Cramer on Facebook (FB) and Twitter (FB)