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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.

Industry: Aerospace & Defense
Ticker
Company
Forecast Score
Market Cap
Price
Price Target
Upside/Downside
Consensus
Analysts
Fore. Revenue Growth
Fore. Earnings Growth
Forecast ROE
Forecast ROA
NOC
NORTHROP GRUMMAN CORP
$69.68B$455.25$492.208.12%Buy10N/AN/AN/AN/A
CODA
CODA OCTOPUS GROUP INC
$74.39M$6.75N/AN/AN/AN/AN/AN/AN/AN/A
DRS
LEONARDO DRS INC
N/A$12.85$16.6729.70%Strong Buy3N/AN/AN/AN/A
HII
HUNTINGTON INGALLS INDUSTRIES INC
$7.97B$200.03$244.2022.08%Hold6N/AN/AN/AN/A
GD
GENERAL DYNAMICS CORP
$61.34B$223.50$252.8013.11%Strong Buy5N/AN/AN/AN/A
AXON
AXON ENTERPRISE INC
$15.78B$216.58$223.443.17%Buy9N/AN/AN/AN/A
RGR
STURM RUGER & CO INC
$969.22M$55.08N/AN/AN/AN/AN/AN/AN/AN/A
SWBI
SMITH & WESSON BRANDS INC
$519.57M$11.32N/AN/AN/AN/AN/AN/AN/AN/A
LMT
LOCKHEED MARTIN CORP
$121.15B$474.54$474.40-0.03%Hold11N/AN/AN/AN/A
PKE
PARK AEROSPACE CORP
$256.30M$12.52N/AN/AN/AN/AN/AN/AN/AN/A
TXT
TEXTRON INC
$13.90B$67.74$88.5030.65%Strong Buy2N/AN/AN/AN/A
PL
PLANET LABS PBC
$957.81M$3.52$6.5084.66%Buy2N/AN/AN/AN/A
LHX
L3HARRIS TECHNOLOGIES INC
$36.71B$193.13$248.8928.87%Buy12N/AN/AN/AN/A
ASTC
ASTROTECH CORP
$18.77M$11.09N/AN/AN/AN/AN/AN/AN/AN/A
AIR
AAR CORP
$1.90B$54.65$57.675.52%Strong Buy3N/AN/AN/AN/A
HEI
HEICO CORP
$22.69B$165.75$184.3311.21%Buy7N/AN/AN/AN/A
RTX
RAYTHEON TECHNOLOGIES CORP
$141.28B$96.44$106.7510.69%Buy9N/AN/AN/AN/A
POWW
AMMO INC
$202.69M$1.72$3.0074.42%Buy2N/AN/AN/AN/A
VORB
VIRGIN ORBIT HOLDINGS INC
$269.61M$0.80$1.0025.00%Sell1N/AN/AN/AN/A
DPRO
DRAGANFLY INC
$53.04M$1.65$3.50112.12%Buy1N/AN/AN/AN/A
LILM
LILIUM NV
$198.37M$0.67$3.00345.10%Hold3N/AN/AN/AN/A
VSEC
VSE CORP
$570.56M$44.45$56.0025.98%Strong Buy3N/AN/AN/AN/A
RKLB
ROCKET LAB USA INC
$1.88B$3.93$7.1381.30%Buy4N/AN/AN/AN/A
HXL
HEXCEL CORP
$5.69B$67.48$67.830.52%Hold7N/AN/AN/AN/A
KTOS
KRATOS DEFENSE & SECURITY SOLUTIONS INC
$1.68B$13.29$13.13-1.24%Buy4N/AN/AN/AN/A
VTSI
VIRTRA INC
$41.30M$3.79N/AN/AN/AN/AN/AN/AN/AN/A
UAVS
AGEAGLE AERIAL SYSTEMS INC
$33.03M$0.38N/AN/AN/AN/AN/AN/AN/AN/A
IVAC
INTEVAC INC
$185.75M$7.20$9.0025.00%Strong Buy1N/AN/AN/AN/A
ISSC
INNOVATIVE SOLUTIONS & SUPPORT INC
$132.58M$7.62N/AN/AN/AN/AN/AN/AN/AN/A
ESLT
ELBIT SYSTEMS LTD
$7.82B$176.40N/AN/AN/AN/AN/AN/AN/AN/A
NPK
NATIONAL PRESTO INDUSTRIES INC
$500.13M$70.79N/AN/AN/AN/AN/AN/AN/AN/A
KAMN
KAMAN CORP
$602.70M$21.50N/AN/AHold1N/AN/AN/AN/A
BYRN
BYRNA TECHNOLOGIES INC
$170.99M$7.82$15.5098.21%Strong Buy2N/AN/AN/AN/A
MOG.A
MOOG INC
$3.10B$97.36$110.0012.98%Sell2N/AN/AN/AN/A
WWD
WOODWARD INC
$5.43B$90.83$113.8025.29%Buy6N/AN/AN/AN/A
ASTR
ASTRA SPACE INC
$113.14M$0.42$1.00136.41%Hold1N/AN/AN/AN/A
MOB
MOBILICOM LTD
$6.82M$1.28N/AN/AN/AN/AN/AN/AN/AN/A
BWXT
BWX TECHNOLOGIES INC
$5.59B$61.26$68.5011.82%Strong Buy2N/AN/AN/AN/A
SPCE
VIRGIN GALACTIC HOLDINGS INC
$1.15B$4.10$4.253.66%Sell4N/AN/AN/AN/A
TGI
TRIUMPH GROUP INC
$678.06M$10.43$10.672.27%Hold3N/AN/AN/AN/A
MRCY
MERCURY SYSTEMS INC
$2.85B$49.00$56.3314.97%Hold4N/AN/AN/AN/A
ATRO
ASTRONICS CORP
$409.67M$12.69N/AN/AN/AN/AN/AN/AN/AN/A
ACHR
ARCHER AVIATION INC
$623.35M$2.52$6.83171.15%Strong Buy3N/AN/AN/AN/A
EVEX
EVE HOLDING INC
$1.68B$6.23$7.5020.39%Buy2N/AN/AN/AN/A
MNTS
MOMENTUS INC
$58.79M$0.63N/AN/AN/AN/AN/AN/AN/AN/A
TDG
TRANSDIGM GROUP INC
$38.43B$703.89$765.118.70%Buy9N/AN/AN/AN/A
AVAV
AEROVIRONMENT INC
$2.28B$90.06$111.6723.99%Strong Buy3N/AN/AN/AN/A
CDRE
CADRE HOLDINGS INC
$702.59M$18.82$31.6768.26%Buy3N/AN/AN/AN/A
DCO
DUCOMMUN INC
$639.39M$52.64$60.0013.98%Buy1N/AN/AN/AN/A
AIRI
AIR INDUSTRIES GROUP
$11.76M$3.62N/AN/AN/AN/AN/AN/AN/AN/A
TATT
TAT TECHNOLOGIES LTD
$50.39M$5.50N/AN/AN/AN/AN/AN/AN/AN/A
VVX
V2X INC
$1.19B$38.46$57.5049.51%Strong Buy2N/AN/AN/AN/A
SIDU
SIDUS SPACE INC
$21.83M$0.62N/AN/AN/AN/AN/AN/AN/AN/A
ERJ
EMBRAER SA
$2.84B$15.48$17.9015.63%Strong Buy5N/AN/AN/AN/A
LLAP
TERRAN ORBITAL CORP
$229.39M$1.59$13.00717.61%Strong Buy2N/AN/AN/AN/A
AJRD
AEROJET ROCKETDYNE HOLDINGS INC
$4.49B$55.60$58.004.32%Hold2N/AN/AN/AN/A
SPR
SPIRIT AEROSYSTEMS HOLDINGS INC
$3.23B$30.67$37.4422.09%Buy10N/AN/AN/AN/A
EVTL
VERTICAL AEROSPACE LTD
$364.16M$1.70$4.50164.71%Sell2N/AN/AN/AN/A
EH
EHANG HOLDINGS LTD
$554.43M$9.62N/AN/AN/AN/AN/AN/AN/AN/A
CAE
CAE INC
$6.71B$21.10$24.0013.74%Strong Buy2N/AN/AN/AN/A
SIF
SIFCO INDUSTRIES INC
$16.47M$2.70N/AN/AN/AN/AN/AN/AN/AN/A
BA
BOEING CO
$118.17B$197.53$218.5010.62%Buy1015.60%N/A-30.17%3.50%
CVU
CPI AEROSTRUCTURES INC
$45.08M$3.64N/AN/AN/AN/AN/AN/AN/AN/A
SKYH
SKY HARBOUR GROUP CORP
$492.68M$8.62N/AN/AN/AN/AN/AN/AN/AN/A
RDW
REDWIRE CORP
$176.87M$2.77N/AN/AN/AN/AN/AN/AN/AN/A
AZ
A2Z SMART TECHNOLOGIES CORP
$29.75M$1.09N/AN/AN/AN/AN/AN/AN/AN/A
NXT
NEXTRACKER INC
$4.42B$31.20$39.7827.49%Strong Buy9N/AN/AN/AN/A
AWIN
AERWINS TECHNOLOGIES INC
$46.99M$0.83$2.00140.96%Strong Buy1N/AN/AN/AN/A
LUNR
INTUITIVE MACHINES INC
$323.70M$10.79$23.00113.16%Strong Buy3N/AN/AN/AN/A

Defense Stocks FAQ

What are the best defense stocks to buy right now in Mar 2023?

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

1. Northrop Grumman (NYSE:NOC)


Northrop Grumman (NYSE:NOC) is the top defense stock with a Zen Score of 48, which is 23 points higher than the defense industry average of 25. It passed 17 out of 38 due diligence checks and has strong fundamentals. Northrop Grumman has seen its stock return 0.15% over the past year, overperforming other defense stocks by 5 percentage points.

Northrop Grumman has an average 1 year price target of $492.20, an upside of 8.12% from Northrop Grumman's current stock price of $455.25.

Northrop Grumman stock has a consensus Buy recommendation according to Wall Street analysts. Of the 10 analysts covering Northrop Grumman, 20% have issued a Strong Buy rating, 30% have issued a Buy, 40% have issued a hold, while 0% have issued a Sell rating, and 10% have issued a Strong Sell.

2. Coda Octopus Group (NASDAQ:CODA)


Coda Octopus Group (NASDAQ:CODA) is the second best defense stock with a Zen Score of 46, which is 21 points higher than the defense industry average of 25. It passed 14 out of 33 due diligence checks and has strong fundamentals. Coda Octopus Group has seen its stock lose -3.23% over the past year, overperforming other defense stocks by 2 percentage points.

3. Leonardo Drs (NASDAQ:DRS)


Leonardo Drs (NASDAQ:DRS) is the third best defense stock with a Zen Score of 45, which is 20 points higher than the defense industry average of 25. It passed 14 out of 33 due diligence checks and has strong fundamentals.

Leonardo Drs has an average 1 year price target of $16.67, an upside of 29.7% from Leonardo Drs's current stock price of $12.85.

Leonardo Drs stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 3 analysts covering Leonardo Drs, 66.67% have issued a Strong Buy rating, 33.33% have issued a Buy, 0% 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 19 defense stocks that have issued dividends in the past year, the 3 defense stocks with the highest dividend yields are:

1. Sturm Ruger & Co (NYSE:RGR)


Sturm Ruger & Co (NYSE:RGR) has an annual dividend yield of 12.67%, which is 10 percentage points higher than the defense industry average of 2.81%. Sturm Ruger & Co's dividend payout is not stable, having dropped more than 10% fourteen times in the last 10 years. Sturm Ruger & Co's dividend has shown consistent growth over the last 10 years.

Sturm Ruger & Co's dividend payout ratio of 148.4% 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 11.18%, which is 8 percentage points higher than the defense industry average of 2.81%. 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 105.3% indicates that its high dividend yield might not be sustainable for the long-term.

3. National Presto Industries (NYSE:NPK)


National Presto Industries (NYSE:NPK) has an annual dividend yield of 5.65%, which is 3 percentage points higher than the defense industry average of 2.81%. 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 137% indicates that its high dividend yield might not be sustainable for the long-term.

Why are defense stocks up?

Defense stocks were up 0.95% in the last day, and up 1.48% over the last week. Virgin Orbit Holdings was the among the top gainers in the aerospace & defense industry, gaining 50.09% yesterday.

Virgin Orbit shares are trading higher. Strength may be related to a recent report stating the company is in talks with interested parties about an investment in the company.

What are the most undervalued defense stocks?

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

1. Smith & Wesson Brands (NASDAQ:SWBI)


Smith & Wesson Brands (NASDAQ:SWBI) is the most undervalued defense stock based on WallStreetZen's Valuation Score. Smith & Wesson Brands has a valuation score of 86, which is 63 points higher than the defense industry average of 23. It passed 6 out of 7 valuation due diligence checks.

Smith & Wesson Brands's stock has dropped -29.07% in the past year. It has underperformed other stocks in the defense industry by -24 percentage points.

2. Lilium Nv (NASDAQ:LILM)


Lilium Nv (NASDAQ:LILM) is the second most undervalued defense stock based on WallStreetZen's Valuation Score. Lilium Nv has a valuation score of 71, which is 48 points higher than the defense industry average of 23. It passed 5 out of 7 valuation due diligence checks.

Lilium Nv's stock has dropped -83.32% in the past year. It has underperformed other stocks in the defense industry by -78 percentage points.

3. Astra Space (NASDAQ:ASTR)


Astra Space (NASDAQ:ASTR) is the third most undervalued defense stock based on WallStreetZen's Valuation Score. Astra Space has a valuation score of 71, which is 48 points higher than the defense industry average of 23. It passed 5 out of 7 valuation due diligence checks.

Astra Space's stock has dropped -89.95% in the past year. It has underperformed other stocks in the defense industry by -85 percentage points.

Are defense stocks a good buy now?

36.17% of defense stocks rated by analysts are a strong buy right now. On average, analysts expect defense stocks to rise by 13.13% 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 15.64x.
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.