Cramer's War & Defense Stock Pick (LMT, GD, LLL, NOC, LMT)

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On tonight’s MAD MONEY on CNBC, Jim Cramer was visiting the USC Campus in Los Angeles and he said Northrup Grumman (NYSE:NOC) is a defense stock that is a growth stock that was sold off without the right reasons.  The analysts are almost all HOLD rated on this even though they like the sector.  13% growth and a 14 P/E ratio is better than good for Cramer.  Cramer likes all the other defense stocks, but he thinks Northrup is so darn cheap that it has to go higher.  This also traded higher today, along with Raytheon (NYSE:RTN).  He thinks it has been trading like a homebuilder or a lender.  He thinks it is very undervalued with the potential for accelerated growth.

Cramer did say he likes L-3 (NYSE:LLL), General Dynamics (NYSE:GD), Lockheed Martin (NYSE:LMT) and other defense sectors.  But "NOC" is his pick and he said "it’s so cheap, it has to go higher."

Jon C. Ogg
September 7, 2007

Jon Ogg can be reached at jonogg@247wallst.com; he does not own securities in the companies he covers.