Jim Cramer Considers AeroVironment "Incredibly Expensive at These Levels"

AeroVironment, Inc. (NASDAQ:AVAV) is one of the stocks Jim Cramer talked about, along with market froth. Cramer highlighted that he likes the stock, as he stated:

Then there are the companies that make drones for the defense department, like Kratos Defense & Security, AVAV… the former AeroVironment, bear with me on this one, smaller player Red Cat, all three up between 37% and 82% for the year. Now, I actually like AVAV… along with Kratos, actually profitable, but they’re both incredibly expensive at these levels. Plus, there hasn’t been any real catalysts for the drone companies aside from the president’s sabre-rattling.

AeroVironment, Inc. (NASDAQ:AVAV) develops robotic and autonomous systems, including uncrewed aircraft, counter-UAS tools, precision-strike solutions, advanced AI, and autonomy. In addition, the company provides space, cyber, communications, and intelligence systems used in defense and commercial applications. A caller inquired about the stock during the episode aired on January 7, and Cramer replied:

But I got to tell you, you got a lucky break. After the close, we heard from President Trump, said he wants to make the defense budget go up dramatically, like $500 billion. And I got to tell you something, the stock, which went out at $318 at 4:00, it’s trading right now at $335. And there’s nothing funky about that. That’s a terrific company. We have them all the time. All I can say is congratulations. Think about how much money… [the caller] just made.

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Disclosure: None. This article is originally published at Insider Monkey.