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Cramer: Target hack driving business here?

(Click for video linked to a searchable transcript of this Mad Money segment)

As many as 70 million Target shoppers have been potentially compromised by a December cyber attack. The ripple could be significant.

Jim Cramer believes shrewd investors should always look for stock catalysts and for better or worse, it seems this breach could be a big catalyst.

Although the ripple could impact many different companies for quite some time, Cramer thinks it may immediately drive business at Lifelock.

Stephen Swintek | Stone | Getty Images

You may know Lifelock from its 2007 ad campaign in which CEO Todd Davis publicly posted his Social Security number on billboards to illustrate the company's identity theft protection services.

"You sign up with them, and the company will continuously monitor your credit and identity related events so they can alert you if they detect any fraudulent activity," Cramer explained.

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The Mad Money host thinks the Target breach spooked shoppers, especially those who regularly use their debit cards, with the hack potentially threatening savings.

Therefore he believes services offered by Lifelock may be viewed as comforting and valuable as authorities continue to sift through the stolen data and determine how it might be used by criminals.

"Now let me be clear," Cramer added. "LifeLock is not in the business of stopping something like the Target hack—it's much more about alerting you to credit card fraud or identity theft, and if your identity does get stolen while you're a subscriber, the company will spend up to a million dollars on lawyers and investigators to fix the situation."

Of course, that's not to say Lifelock is a secret on Wall Street, it's not.

"That latest quarter was already a blowout. LifeLock earned 12-cents a share when the Street was only expecting 11-cents and its billings roared 32% higher," Cramer noted.

"Its average revenue per user increased by 12%, and the company grew its total subscriber base by 21%. Plus, 40% of those new customers signed up for LifeLock's higher priced Ultimate product, their most comprehensive protection service," Cramer added.

Those are good numbers and it appears they're somewhat factored into shareprice.

"Here's the rub, Lifelock is now trading at 43 times this 2014 earnings estimates, which is not cheap for a stock with a 26% long-term growth rate," Cramer said.

Nonetheless, after the Target breach, the Mad Money host thinks the stock warrants further attention.

"At the end of October, Lifelock had 2.9 million subscribers, but I think that number could go much higher now -- after Target," Cramer said.

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