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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.

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

Aerovironment (NASDAQ:AVAV) 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 20 out of 33 due diligence checks and has strong fundamentals. Aerovironment has seen its stock return 99.32% over the past year, overperforming other defense stocks by 65 percentage points.

Aerovironment has an average 1 year price target of $224.00, an upside of 4% from Aerovironment's current stock price of $215.39.

Aerovironment stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 4 analysts covering Aerovironment, 50% have issued a Strong Buy rating, 50% have issued a Buy, 0% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

General Dynamics (NYSE:GD) is the second best defense stock with a Zen Score of 54, which is 25 points higher than the defense industry average of 29. It passed 19 out of 38 due diligence checks and has strong fundamentals. General Dynamics has seen its stock return 25.93% over the past year, underperforming other defense stocks by -8 percentage points.

General Dynamics has an average 1 year price target of $322.43, an upside of 7.68% from General Dynamics's current stock price of $299.44.

General Dynamics stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 14 analysts covering General Dynamics, 50% have issued a Strong Buy rating, 21.43% have issued a Buy, 28.57% 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 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. Huntington Ingalls Industries has seen its stock return 17.74% over the past year, underperforming other defense stocks by -17 percentage points.

Huntington Ingalls Industries has an average 1 year price target of $290.00, an upside of 11.8% from Huntington Ingalls Industries's current stock price of $259.39.

Huntington Ingalls Industries stock has a consensus Buy recommendation according to Wall Street analysts. Of the 3 analysts covering Huntington Ingalls Industries, 33.33% have issued a Strong Buy rating, 0% have issued a Buy, 66.67% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Out of 19 defense stocks that have issued dividends in the past year, the 3 defense stocks with the highest dividend yields are:

Transdigm Group (NYSE:TDG) has an annual dividend yield of 7.8%, which is 6 percentage points higher than the defense industry average of 1.96%.

Transdigm Group's dividend payout ratio of 129.5% 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 6.33%, which is 4 percentage points higher than the defense industry average of 1.96%. 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 97.6% indicates that its high dividend yield might not be sustainable for the long-term.

Smith & Wesson Brands (NASDAQ:SWBI) has an annual dividend yield of 3.9%, which is 2 percentage points higher than the defense industry average of 1.96%. Smith & Wesson Brands's dividend payout is stable, having never dropped by more than 10% in the last 10 years. Smith & Wesson Brands's dividend has shown consistent growth over the last 10 years.

Smith & Wesson Brands's dividend payout ratio of 66.2% indicates that its dividend yield is sustainable for the long-term.

Defense stocks were up 2.04% in the last day, and up 1.29% over the last week. Boeing Co was the among the top gainers in the aerospace & defense industry, gaining 3% yesterday.

Boeing shares are trading lower after the company announced worse-than-expected Q3 preliminary revenue and a 10% reduction in its workforce.

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 86, which is 67 points higher than the defense industry average of 19. It passed 6 out of 7 valuation due diligence checks.

Innovative Solutions & Support's stock has dropped -5.42% in the past year. It has underperformed other stocks in the defense industry by -40 percentage points.

Tat Technologies (NASDAQ:TATT) is the second most undervalued defense stock based on WallStreetZen's Valuation Score. Tat Technologies 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.

Tat Technologies's stock has gained 112.51% in the past year. It has overperformed other stocks in the defense industry by 78 percentage points.

Cpi Aerostructures (NYSEMKT:CVU) is the third 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 gained 9.54% in the past year. It has underperformed other stocks in the defense industry by -25 percentage points.