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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
Country
Market Cap
Shares
Institutional %
Insider %
Net Insider (L12M)
Net Insider (L3M)
CODA
CODA OCTOPUS GROUP INC
United States
$67.48M11,117,6953.61%96.39%Net Selling
NOC
NORTHROP GRUMMAN CORP
United States
$64.29B151,299,69682.45%4.21%Net SellingNet Selling
HII
HUNTINGTON INGALLS INDUSTRIES INC
United States
$8.02B39,867,60689.22%3.76%Net BuyingNet Selling
BYRN
BYRNA TECHNOLOGIES INC
United States
$68.35M21,977,02726.82%37.02%Net BuyingNet Buying
LMT
LOCKHEED MARTIN CORP
United States
$104.17B251,831,46274.03%0.37%Net SellingNet Selling
PKE
PARK AEROSPACE CORP
United States
$316.51M20,250,21177.89%10.71%
VTSI
VIRTRA INC
United States
$65.78M10,926,77414.29%85.71%Net Buying
GD
GENERAL DYNAMICS CORP
United States
$59.62B273,042,57185.98%5.20%Net SellingNet Selling
RGR
STURM RUGER & CO INC
United States
$909.53M17,722,68264.12%28.57%Net Selling
LHX
L3HARRIS TECHNOLOGIES INC
United States
$32.83B189,132,69381.44%1.25%Net SellingNet Selling
BWXT
BWX TECHNOLOGIES INC
United States
$6.77B91,466,24488.19%11.81%Net SellingNet Selling
POWW
AMMO INC
United States
$234.74M117,957,92123.80%25.19%Net BuyingNet Buying
CVU
CPI AEROSTRUCTURES INC
United States
$40.70M12,639,2445.57%94.43%Net BuyingNet Buying
AIR
AAR CORP
United States
$2.10B34,934,95789.51%10.49%Net BuyingNet Buying
DRS
LEONARDO DRS INC
United States
$4.29B262,000,00018.73%80.37%Net Selling
RTX
RTX CORP
United States
$104.19B1,455,514,94478.87%0.37%Net SellingNet Buying
WWD
WOODWARD INC
United States
$7.49B60,417,60079.97%6.76%Net BuyingNet Buying
TXT
TEXTRON INC
United States
$15.41B198,070,58885.92%1.39%Net SellingNet Selling
CW
CURTISS WRIGHT CORP
United States
$7.58B38,305,44280.76%1.98%Net BuyingNet Selling
PL
PLANET LABS PBC
United States
$737.00M285,659,79440.91%14.18%Net BuyingNet Selling
HEI
HEICO CORP
United States
$22.06B138,187,47278.10%4.40%Net BuyingNet Selling
MOG.A
MOOG INC
United States
$3.46B31,898,47889.03%3.81%Net BuyingNet Buying
HXL
HEXCEL CORP
United States
$5.52B84,465,70174.61%25.39%Net SellingNet Selling
ESLT
ELBIT SYSTEMS LTD
Israel
$8.93B44,348,00018.57%0.00%
AXON
AXON ENTERPRISE INC
United States
$14.61B74,759,98976.48%9.63%Net BuyingNet Selling
ASTC
ASTROTECH CORP
United States
$17.27M1,684,5561.21%98.79%Net Buying
HWM
HOWMET AEROSPACE INC
United States
$18.88B412,208,00683.76%16.24%Net SellingNet Selling
SPCE
VIRGIN GALACTIC HOLDINGS INC
United States
$627.80M367,136,59828.47%35.59%Net SellingNet Selling
NPK
NATIONAL PRESTO INDUSTRIES INC
United States
$511.56M7,079,39156.95%24.95%Net SellingNet Selling
SWBI
SMITH & WESSON BRANDS INC
United States
$578.24M46,148,45157.44%39.33%Net SellingNet Selling
RKLB
ROCKET LAB USA INC
United States
$2.17B483,326,61454.20%32.62%Net SellingNet Selling
KTOS
KRATOS DEFENSE & SECURITY SOLUTIONS INC
United States
$1.84B128,059,18670.62%29.38%Net SellingNet Selling
CAE
CAE INC
Canada
$7.54B318,106,70364.35%0.00%
MNTS
MOMENTUS INC
United States
$4.48M1,957,33557.24%42.76%Net SellingNet Selling
VSEC
VSE CORP
United States
$875.77M15,372,54471.08%20.80%Net SellingNet Buying
MRCY
MERCURY SYSTEMS INC
United States
$2.20B58,189,92987.02%12.98%Net BuyingNet Buying
CDRE
CADRE HOLDINGS INC
United States
$977.24M37,586,03122.67%77.33%Net SellingNet Selling
ERJ
EMBRAER SA
Brazil
$2.61B734,632,8068.64%0.00%
EH
EHANG HOLDINGS LTD
China
$1.06B120,159,0008.01%0.00%
ISSC
INNOVATIVE SOLUTIONS & SUPPORT INC
United States
$136.26M17,446,99020.11%59.13%Net BuyingNet Selling
DCO
DUCOMMUN INC
United States
$625.76M14,569,58985.76%9.68%Net SellingNet Selling
OPXS
OPTEX SYSTEMS HOLDINGS INC
United States
$28.20M6,763,0707.15%36.69%Net Buying
LUNR
INTUITIVE MACHINES INC
United States
$340.76M86,708,4222.98%97.02%Net Selling
KAMN
KAMAN CORP
United States
$556.77M28,219,53584.26%5.61%Net Selling
AVAV
AEROVIRONMENT INC
United States
$2.95B26,290,44066.85%33.15%Net BuyingNet Buying
TGI
TRIUMPH GROUP INC
United States
$576.88M76,713,28187.65%7.95%Net SellingNet Buying
ATRO
ASTRONICS CORP
United States
$507.57M32,536,29955.91%37.39%Net Selling
SATL
SATELLOGIC INC
United States
$126.42M89,661,53018.66%0.67%
TDG
TRANSDIGM GROUP INC
United States
$46.76B55,183,16017.63%82.37%Net SellingNet Selling
TATT
TAT TECHNOLOGIES LTD
Israel
$82.95M9,216,8964.22%0.00%
LLAP
TERRAN ORBITAL CORP
United States
$174.10M172,377,85344.62%55.38%Net Selling
BA
BOEING CO
United States
$119.26B603,203,55461.12%1.33%Net SellingNet Selling
SIDU
SIDUS SPACE INC
United States
$12.41M73,015,05411.20%14.38%Net Buying
EVEX
EVE HOLDING INC
United States
$2.25B269,163,9210.67%91.75%Net Selling
AULT
AULT ALLIANCE INC
United States
$2.61M5,553,0270.30%99.70%Net BuyingNet Buying
RDW
REDWIRE CORP
United States
$190.41M64,765,5295.97%94.03%Net SellingNet Selling
AIRI
AIR INDUSTRIES GROUP
United States
$10.63M3,289,8272.69%97.31%Net BuyingNet Buying
SPPL
SIMPPLE LTD
Singapore
N/A16,088,6610.00%0.00%
VVX
V2X INC
United States
$1.56B31,185,42244.07%55.93%Net SellingNet Selling
ASTR
ASTRA SPACE INC
United States
$31.85M18,202,73030.14%69.86%Net BuyingNet Selling
KWE
KWESST MICRO SYSTEMS INC
Canada
$5.95M4,074,58814.82%0.00%
AZ
A2Z SMART TECHNOLOGIES CORP
Canada
$51.38M32,728,8833.13%0.00%
EVTL
VERTICAL AEROSPACE LTD
United Kingdom
$261.03M221,211,0212.58%1.86%
ACHR
ARCHER AVIATION INC
United States
$1.33B255,736,12830.78%26.59%Net SellingNet Selling
SPR
SPIRIT AEROSYSTEMS HOLDINGS INC
United States
$1.60B105,289,35388.07%3.41%Net Selling
DPRO
DRAGANFLY INC
Canada
$37.27M43,339,9622.05%0.00%
KITT
NAUTICUS ROBOTICS INC
United States
$95.16M49,820,9182.03%97.97%Net Selling
SIF
SIFCO INDUSTRIES INC
United States
$17.22M6,107,64817.99%54.37%Net Buying
SKYH
SKY HARBOUR GROUP CORP
United States
$257.80M57,289,2480.55%99.45%
LILM
LILIUM NV
Germany
$330.37M403,869,7983.14%0.00%

Defense Stocks FAQ

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

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

1. Coda Octopus Group (NASDAQ:CODA)


Coda Octopus Group (NASDAQ:CODA) is the top defense stock with a Zen Score of 55, which is 26 points higher than the defense industry average of 29. It passed 17 out of 33 due diligence checks and has strong fundamentals. Coda Octopus Group has seen its stock return 19.49% over the past year, overperforming other defense stocks by 11 percentage points.

Coda Octopus Group has an average 1 year price target of $10.00, an upside of 64.74% from Coda Octopus Group's current stock price of $6.07.

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.

2. Northrop Grumman (NYSE:NOC)


Northrop Grumman (NYSE:NOC) 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 20 out of 38 due diligence checks and has strong fundamentals. Northrop Grumman has seen its stock lose -14.41% over the past year, underperforming other defense stocks by -23 percentage points.

Northrop Grumman has an average 1 year price target of $497.00, an upside of 16.97% from Northrop Grumman's current stock price of $424.90.

Northrop Grumman stock has a consensus Buy recommendation according to Wall Street analysts. Of the 5 analysts covering Northrop Grumman, 20% have issued a Strong Buy rating, 20% have issued a Buy, 60% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

3. Huntington Ingalls Industries (NYSE:HII)


Huntington Ingalls Industries (NYSE:HII) 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 19 out of 38 due diligence checks and has strong fundamentals. Huntington Ingalls Industries has seen its stock lose -14.62% over the past year, underperforming other defense stocks by -23 percentage points.

What are the defense stocks with highest dividends?

Out of 24 defense stocks that have issued dividends in the past year, the 3 defense stocks with the highest dividend yields are:

1. Transdigm Group (NYSE:TDG)


Transdigm Group (NYSE:TDG) has an annual dividend yield of N/A, which is N/A percentage points lower than the defense industry average of 2.55%.

Transdigm Group's dividend payout ratio of 98.7% indicates that its dividend yield might not be sustainable for the long-term.

2. Spirit Aerosystems Holdings (NYSE:SPR)


Spirit Aerosystems Holdings (NYSE:SPR) has an annual dividend yield of N/A, which is N/A percentage points lower than the defense industry average of 2.55%. Spirit Aerosystems Holdings's dividend payout is not stable, having dropped more than 10% one times in the last 10 years. Spirit Aerosystems Holdings's dividend has not shown consistent growth over the last 10 years.

Spirit Aerosystems Holdings's dividend payout ratio of -0.1% indicates that its dividend yield might not be sustainable for the long-term.

3. Sturm Ruger & Co (NYSE:RGR)


Sturm Ruger & Co (NYSE:RGR) has an annual dividend yield of 12.69%, which is 10 percentage points higher than the defense industry average of 2.55%. 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 not shown consistent growth over the last 10 years.

Sturm Ruger & Co's dividend payout ratio of 172.8% indicates that its high dividend yield might not be sustainable for the long-term.

Why are defense stocks down?

Defense stocks were down -0.67% in the last day, and down -2.3% over the last week.

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

What are the most undervalued defense stocks?

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

1. Coda Octopus Group (NASDAQ:CODA)


Coda Octopus Group (NASDAQ:CODA) is the most undervalued defense stock based on WallStreetZen's Valuation Score. Coda Octopus Group has a valuation score of 71, which is 53 points higher than the defense industry average of 18. It passed 5 out of 7 valuation due diligence checks.

Coda Octopus Group's stock has gained 19.49% in the past year. It has overperformed other stocks in the defense industry by 11 percentage points.

2. Leonardo Drs (NASDAQ:DRS)


Leonardo Drs (NASDAQ:DRS) is the second most undervalued defense stock based on WallStreetZen's Valuation Score. Leonardo Drs has a valuation score of 71, which is 53 points higher than the defense industry average of 18. It passed 5 out of 7 valuation due diligence checks.

3. Cpi Aerostructures (NYSEMKT:CVU)


Cpi Aerostructures (NYSEMKT:CVU) is the third most undervalued defense stock based on WallStreetZen's Valuation Score. Cpi Aerostructures has a valuation score of 57, which is 39 points higher than the defense industry average of 18. It passed 4 out of 7 valuation due diligence checks.

Cpi Aerostructures's stock has gained 222% in the past year. It has overperformed other stocks in the defense industry by 213 percentage points.

Are defense stocks a good buy now?

56.25% of defense stocks rated by analysts are a strong buy right now. On average, analysts expect defense stocks to rise by 20.63% 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 16.29x.
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.