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	55	57	71	0	90	–
LMT	LOCKHEED MARTIN CORP	50	29	71	11	60	80
GD	GENERAL DYNAMICS CORP	49	43	71	22	30	80
NOC	NORTHROP GRUMMAN CORP	49	43	57	44	20	80
LHX	L3HARRIS TECHNOLOGIES INC	48	57	29	44	30	80
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Defense Stocks FAQ

What are the best defense stocks to buy right now in May 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 55, which is 27 points higher than the defense industry average of 28. It passed 18 out of 33 due diligence checks and has strong fundamentals. Virtra has seen its stock return 185.29% over the past year, overperforming other defense stocks by 175 percentage points.

Virtra has an average 1 year price target of $16.00, a downside of -1.78% from Virtra's current stock price of $16.29.

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. Lockheed Martin (NYSE:LMT)

Lockheed Martin (NYSE:LMT) is the second best defense stock with a Zen Score of 50, which is 22 points higher than the defense industry average of 28. It passed 18 out of 38 due diligence checks and has strong fundamentals. Lockheed Martin has seen its stock return 0.94% over the past year, underperforming other defense stocks by -10 percentage points.

Lockheed Martin has an average 1 year price target of $502.75, an upside of 8.54% from Lockheed Martin's current stock price of $463.20.

Lockheed Martin stock has a consensus Buy recommendation according to Wall Street analysts. Of the 8 analysts covering Lockheed Martin, 37.5% have issued a Strong Buy rating, 0% have issued a Buy, 62.5% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

3. Northrop Grumman (NYSE:NOC)

Northrop Grumman (NYSE:NOC) is the third best defense stock with a Zen Score of 49, which is 21 points higher than the defense industry average of 28. It passed 17 out of 38 due diligence checks and has strong fundamentals. Northrop Grumman has seen its stock return 5.84% over the past year, underperforming other defense stocks by -5 percentage points.

Northrop Grumman has an average 1 year price target of $496.83, an upside of 4.6% from Northrop Grumman's current stock price of $475.00.

Northrop Grumman stock has a consensus Hold recommendation according to Wall Street analysts. Of the 6 analysts covering Northrop Grumman, 16.67% have issued a Strong Buy rating, 0% have issued a Buy, 66.67% have issued a hold, while 16.67% 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 5.37%, which is 4 percentage points higher than the defense industry average of 1.56%. 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 3.46%, which is 2 percentage points higher than the defense industry average of 1.56%. 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. Smith & Wesson Brands (NASDAQ:SWBI)

Smith & Wesson Brands (NASDAQ:SWBI) has an annual dividend yield of 2.81%, which is 1 percentage points higher than the defense industry average of 1.56%.

Smith & Wesson Brands's dividend payout ratio of 80.7% indicates that its dividend yield is sustainable for the long-term.

Why are defense stocks up?

Defense stocks were up 0.6% in the last day, and up 1.49% over the last week. Howmet Aerospace was the among the top gainers in the aerospace & defense industry, gaining 15.45% yesterday.

Howmet Aerospace shares are trading higher after the company reported better-than-expected Q1 financial results.

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 52 points higher than the defense industry average of 19. It passed 5 out of 7 valuation due diligence checks.

Cpi Aerostructures's stock has dropped -22.36% in the past year. It has underperformed other stocks in the defense industry by -33 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 52 points higher than the defense industry average of 19. It passed 5 out of 7 valuation due diligence checks.

Innovative Solutions & Support's stock has dropped -2.28% in the past year. It has underperformed other stocks in the defense industry by -13 percentage points.

3. Tat Technologies (NASDAQ:TATT)

Tat Technologies (NASDAQ:TATT) is the third most undervalued defense stock based on WallStreetZen's Valuation Score. Tat Technologies has a valuation score of 57, which is 38 points higher than the defense industry average of 19. It passed 4 out of 7 valuation due diligence checks.

Tat Technologies's stock has gained 112.1% in the past year. It has overperformed other stocks in the defense industry by 102 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 6.62% 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 23.4x.

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.