CNBC’s Jim Cramer on Thursday gave investors his blessing to buy shares of L3Harris Technologies, an aerospace and defense play.
“Recently, the stock’s come down dramatically from its highs. I think it’s gotten to levels where you have to pounce,” he said.
Cramer said that the stock, which he’s liked since three years ago when Harris Corp and L3 Technologies merged into one firm, is also particularly attractive right now because it’s fairly recession proof.
“They’re not tied to the consumer at all or even the enterprise. They feed at the federal trough, meaning they don’t have to care too much about the broader economy,” he said.
He added that the stock has come down dramatically since its highs in March, when Russia’s invasion of Ukraine propelled the stock from $210 to just under $280. The stock closed at $227.53 on Thursday.
Cramer did acknowledge that the company is contending with supply chain issues. CEO Christopher Kubasik in July cited supply chain disruptions as a headwind to its top line in the company’s second-quarter letter to shareholders.
However, Cramer said that he’s still bullish on L3Harris Technologies long-term, especially because of the demand that Russia’s invasion of Ukraine will likely create for governments looking to replenish their arsenals after sending aid to Ukraine.
“In the end, L3Harris is a company with some real short-term woes, but it’s also winning big long-term business that should pay off in 2023 and 2024,” he said.
