Mad Money

A Defense Stock Obama Could Love?

If the polls are right, then Barack Obama will be our next president. It’s news most aerospace and defense investors don’t want to hear. But not every company in that sector might suffer if the Democrats take the White House. In fact, Cramer thinks AeroVironment could do quite well.

AVAV: Flying High?

AeroVironment makes small, unmanned aerial vehicles or UAVs, which Obama supports. UAVs range in size from something a soldier can carry into combat to those closer to person-flown planes. And most often they’re far less expensive than the F-16s or F-22 Raptors the U.S. uses, and there’s no risk of losing human life.

This is a small, $580 million company (with a clean balance sheet, no debt and about $112 million in cash) that competes with giants of the industry like Northrop Grumman and Lockheed Martin. But CEO Tim Conver told Cramer Tuesday that “very well positioned” to compete in this space. AeroVironment four industry competitions, beating some of the largest prime contractors in the world to do it, and the company is the only supplier small UAVs to the Department of Defense. Plus, there’s a big pipeline of new products on their way to market.

There is only a small group of stocks that Cramer thinks can rally on that poll-predicted Obama win, and AeroVironment is one of them. He said this stock could jump “very quickly” after the election, so he’s bullish on AVAV.

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