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Best Defense Stocks to Buy Now (2023)

Top defense stocks in 2023 ranked by overall Zen Score. See the best defense stocks to buy now, according to analyst forecasts for the aerospace & defense industry.

According to Zen Score, the 3 best defense stocks to buy right now are:

Coda Octopus Group (NASDAQ:CODA) is the top defense stock with a Zen Score of 55, which is 25 points higher than the defense industry average of 30. It passed 17 out of 33 due diligence checks and has strong fundamentals. Coda Octopus Group has seen its stock lose -12.46% over the past year, underperforming other defense stocks by -27 percentage points.

Coda Octopus Group has an average 1 year price target of $10.00, an upside of 69.49% from Coda Octopus Group's current stock price of $5.90.

Coda Octopus Group stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 1 analyst covering Coda Octopus Group, 100% have issued a Strong Buy rating, 0% have issued a Buy, 0% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

L3harris Technologies (NYSE:LHX) is the second best defense stock with a Zen Score of 53, which is 23 points higher than the defense industry average of 30. It passed 20 out of 38 due diligence checks and has strong fundamentals. L3harris Technologies has seen its stock lose -10.1% over the past year, underperforming other defense stocks by -24 percentage points.

L3harris Technologies has an average 1 year price target of $216.00, an upside of 10.31% from L3harris Technologies's current stock price of $195.81.

L3harris Technologies stock has a consensus Buy recommendation according to Wall Street analysts. Of the 10 analysts covering L3harris Technologies, 40% have issued a Strong Buy rating, 30% have issued a Buy, 30% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Huntington Ingalls Industries (NYSE:HII) is the third best defense stock with a Zen Score of 52, which is 22 points higher than the defense industry average of 30. It passed 19 out of 38 due diligence checks and has strong fundamentals. Huntington Ingalls Industries has seen its stock return 4.95% over the past year, underperforming other defense stocks by -9 percentage points.

Huntington Ingalls Industries has an average 1 year price target of $232.00, a downside of -6.03% from Huntington Ingalls Industries's current stock price of $246.89.

Huntington Ingalls Industries stock has a consensus Buy recommendation according to Wall Street analysts. Of the 2 analysts covering Huntington Ingalls Industries, 50% have issued a Strong Buy rating, 0% have issued a Buy, 50% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Out of 23 defense stocks that have issued dividends in the past year, the 3 defense stocks with the highest dividend yields are:

Sturm Ruger & Co (NYSE:RGR) has an annual dividend yield of 14.3%, which is 12 percentage points higher than the defense industry average of 2.53%. Sturm Ruger & Co's dividend payout is not stable, having dropped more than 10% fifteen times in the last 10 years. Sturm Ruger & Co's dividend has not shown consistent growth over the last 10 years.

Sturm Ruger & Co's dividend payout ratio of 202.8% indicates that its high dividend yield might not be sustainable for the long-term.

Park Aerospace (NYSE:PKE) has an annual dividend yield of 9.6%, which is 7 percentage points higher than the defense industry average of 2.53%. Park Aerospace's dividend payout is not stable, having dropped more than 10% four times in the last 10 years. Park Aerospace's dividend has shown consistent growth over the last 10 years.

Park Aerospace's dividend payout ratio of 283.7% indicates that its high dividend yield might not be sustainable for the long-term.

National Presto Industries (NYSE:NPK) has an annual dividend yield of 5.07%, which is 3 percentage points higher than the defense industry average of 2.53%. National Presto Industries's dividend payout is not stable, having dropped more than 10% three times in the last 10 years. National Presto Industries's dividend has not shown consistent growth over the last 10 years.

National Presto Industries's dividend payout ratio of 120.8% indicates that its high dividend yield might not be sustainable for the long-term.

Defense stocks were up 0.53% in the last day, and up 0.45% over the last week.

We couldn't find a catalyst for why defense stocks are up.

Based on WallStreetZen's Valuation Score, the 3 most undervalued defense stocks right now are:

Innovative Solutions & Support (NASDAQ:ISSC) is the most undervalued defense stock based on WallStreetZen's Valuation Score. Innovative Solutions & Support has a valuation score of 71, which is 49 points higher than the defense industry average of 22. It passed 5 out of 7 valuation due diligence checks.

Innovative Solutions & Support's stock has dropped -6.54% in the past year. It has underperformed other stocks in the defense industry by -21 percentage points.

Cpi Aerostructures (NYSEMKT:CVU) is the second most undervalued defense stock based on WallStreetZen's Valuation Score. Cpi Aerostructures has a valuation score of 71, which is 49 points higher than the defense industry average of 22. It passed 5 out of 7 valuation due diligence checks.

Cpi Aerostructures's stock has dropped -27.27% in the past year. It has underperformed other stocks in the defense industry by -41 percentage points.

Coda Octopus Group (NASDAQ:CODA) is the third most undervalued defense stock based on WallStreetZen's Valuation Score. Coda Octopus Group has a valuation score of 71, which is 49 points higher than the defense industry average of 22. It passed 5 out of 7 valuation due diligence checks.

Coda Octopus Group's stock has dropped -12.46% in the past year. It has underperformed other stocks in the defense industry by -27 percentage points.