Sectors & Industries IndustrialsAerospace & Defense
Best Defense Stocks to Buy Now (2024)
Top defense stocks in 2024 ranked by overall Zen Score. See the best defense stocks to buy now, according to analyst forecasts for the aerospace & defense industry.

Industry: Aerospace & Defense

Price Valuation Financials Forecast Earnings & Revenue Dividends Ownership Technicals

Ticker	Company	Zen Score	Valuation Score	Financials Score	Forecast Score	Performance Score	Dividends Score
VTSI	VIRTRA INC	58	71	71	0	90	–
LHX	L3HARRIS TECHNOLOGIES INC	53	57	43	44	40	80
GD	GENERAL DYNAMICS CORP	52	57	71	22	30	80
HII	HUNTINGTON INGALLS INDUSTRIES INC	51	57	57	22	40	80
NOC	NORTHROP GRUMMAN CORP	49	43	57	44	20	80
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Defense Stocks FAQ

What are the best defense stocks to buy right now in Apr 2024?

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

1. Virtra (NASDAQ:VTSI)

Virtra (NASDAQ:VTSI) is the top defense stock with a Zen Score of 58, which is 29 points higher than the defense industry average of 29. It passed 19 out of 33 due diligence checks and has strong fundamentals. Virtra has seen its stock return 131.48% over the past year, overperforming other defense stocks by 131 percentage points.

Virtra has an average 1 year price target of $16.00, an upside of 25.79% from Virtra's current stock price of $12.72.

Virtra stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 2 analysts covering Virtra, 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.

2. L3harris Technologies (NYSE:LHX)

L3harris Technologies (NYSE:LHX) is the second best defense stock with a Zen Score of 53, which is 24 points higher than the defense industry average of 29. It passed 19 out of 38 due diligence checks and has strong fundamentals. L3harris Technologies has seen its stock return 0.94% over the past year, overperforming other defense stocks by 1 percentage points.

L3harris Technologies has an average 1 year price target of $237.56, an upside of 15.63% from L3harris Technologies's current stock price of $205.45.

L3harris Technologies stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 9 analysts covering L3harris Technologies, 55.56% have issued a Strong Buy rating, 33.33% have issued a Buy, 11.11% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

3. General Dynamics (NYSE:GD)

General Dynamics (NYSE:GD) is the third best defense stock with a Zen Score of 52, which is 23 points higher than the defense industry average of 29. It passed 18 out of 38 due diligence checks and has strong fundamentals. General Dynamics has seen its stock return 26.15% over the past year, overperforming other defense stocks by 26 percentage points.

General Dynamics has an average 1 year price target of $304.25, an upside of 5.42% from General Dynamics's current stock price of $288.62.

General Dynamics stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 8 analysts covering General Dynamics, 62.5% have issued a Strong Buy rating, 12.5% have issued a Buy, 25% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

What are the defense stocks with highest dividends?

Out of 20 defense stocks that have issued dividends in the past year, the 3 defense stocks with the highest dividend yields are:

1. National Presto Industries (NYSE:NPK)

National Presto Industries (NYSE:NPK) has an annual dividend yield of 5.51%, which is 4 percentage points higher than the defense industry average of 1.55%. National Presto Industries's dividend payout is not stable, having dropped more than 10% two times in the last 10 years. National Presto Industries's dividend has shown consistent growth over the last 10 years.

National Presto Industries's dividend payout ratio of 92.6% indicates that its high dividend yield might not be sustainable for the long-term.

2. Park Aerospace (NYSE:PKE)

Park Aerospace (NYSE:PKE) has an annual dividend yield of 3.29%, which is 2 percentage points higher than the defense industry average of 1.55%. Park Aerospace's dividend payout is not stable, having dropped more than 10% three 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 319.1% indicates that its dividend yield might not be sustainable for the long-term.

3. Transdigm Group (NYSE:TDG)

Transdigm Group (NYSE:TDG) has an annual dividend yield of 2.95%, which is 1 percentage points higher than the defense industry average of 1.55%.

Transdigm Group's dividend payout ratio of 148.6% indicates that its dividend yield might not be sustainable for the long-term.

Why are defense stocks up?

Defense stocks were up 0.13% in the last day, and down -0.5% over the last week. Ault Alliance was the among the top gainers in the aerospace & defense industry, gaining 25.62% yesterday.

Ault Alliance shares are trading higher after the company announced that it received an investment of $44 million to date from Ault & Company under the November 2023 Securities Purchase Agreement.

What are the most undervalued defense stocks?

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

1. Cpi Aerostructures (NYSEMKT:CVU)

Cpi Aerostructures (NYSEMKT:CVU) is the most undervalued defense stock based on WallStreetZen's Valuation Score. Cpi Aerostructures has a valuation score of 71, which is 50 points higher than the defense industry average of 21. It passed 5 out of 7 valuation due diligence checks.

Cpi Aerostructures's stock has dropped -27.98% in the past year. It has underperformed other stocks in the defense industry by -28 percentage points.

2. Innovative Solutions & Support (NASDAQ:ISSC)

Innovative Solutions & Support (NASDAQ:ISSC) is the second most undervalued defense stock based on WallStreetZen's Valuation Score. Innovative Solutions & Support has a valuation score of 71, which is 50 points higher than the defense industry average of 21. It passed 5 out of 7 valuation due diligence checks.

Innovative Solutions & Support's stock has dropped -3.41% in the past year. It has underperformed other stocks in the defense industry by -4 percentage points.

3. Virtra (NASDAQ:VTSI)

Virtra (NASDAQ:VTSI) is the third most undervalued defense stock based on WallStreetZen's Valuation Score. Virtra has a valuation score of 71, which is 50 points higher than the defense industry average of 21. It passed 5 out of 7 valuation due diligence checks.

Virtra's stock has gained 131.48% in the past year. It has overperformed other stocks in the defense industry by 131 percentage points.

Are defense stocks a good buy now?

54.35% of defense stocks rated by analysts are a strong buy right now. On average, analysts expect defense stocks to rise by 9.79% over the next year.

What is the average p/e ratio of the aerospace & defense industry?

The average P/E ratio of the aerospace & defense industry is 23.95x.

WallStreetZen does not provide financial advice and does not issue recommendations or offers to buy stock or sell any security.

Information is provided 'as-is' and solely for informational purposes and is not advice. WallStreetZen does not bear any responsibility for any losses or damage that may occur as a result of reliance on this data.