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Best Defense Stocks to Buy Now (2024)

Top defense stocks in 2024 ranked by overall Due Diligence Score. See the best defense stocks to buy now, according to analyst forecasts for the aerospace & defense industry.

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

Aerovironment (NASDAQ:AVAV) is the top defense stock with a Due Diligence Score of 57, which is 27 points higher than the defense industry average of 30. It passed 19 out of 33 due diligence checks and has strong fundamentals. Aerovironment has seen its stock return 28.72% over the past year, overperforming other defense stocks by 3 percentage points.

Aerovironment has an average 1 year price target of $225.20, an upside of 37.88% from Aerovironment's current stock price of $163.33.

Aerovironment stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 5 analysts covering Aerovironment, 60% have issued a Strong Buy rating, 40% have issued a Buy, 0% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Smith & Wesson Brands (NASDAQ:SWBI) is the second best defense stock with a Due Diligence Score of 57, which is 27 points higher than the defense industry average of 30. It passed 19 out of 38 due diligence checks and has strong fundamentals. Smith & Wesson Brands has seen its stock lose -23.63% over the past year, underperforming other defense stocks by -50 percentage points.

Smith & Wesson Brands has an average 1 year price target of $13.00, an upside of 19.71% from Smith & Wesson Brands's current stock price of $10.86.

Smith & Wesson Brands stock has a consensus Hold recommendation according to Wall Street analysts. Of the 2 analysts covering Smith & Wesson Brands, 0% have issued a Strong Buy rating, 0% have issued a Buy, 100% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Byrna Technologies (NASDAQ:BYRN) is the third best defense stock with a Due Diligence Score of 57, which is 27 points higher than the defense industry average of 30. It passed 19 out of 33 due diligence checks and has strong fundamentals. Byrna Technologies has seen its stock return 221.16% over the past year, overperforming other defense stocks by 195 percentage points.

Byrna Technologies has an average 1 year price target of $20.00, an upside of 2.93% from Byrna Technologies's current stock price of $19.43.

Byrna Technologies stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 1 analyst covering Byrna Technologies, 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.

Out of 21 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 5.86%, which is 4 percentage points higher than the defense industry average of 1.73%.

Transdigm Group's dividend payout ratio of 429.4% 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 5.08%, which is 3 percentage points higher than the defense industry average of 1.73%. 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 94.7% 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 4.6%, which is 3 percentage points higher than the defense industry average of 1.73%. 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 64.1% indicates that its high dividend yield is sustainable for the long-term.

Defense stocks were down -0.58% in the last day, and down -0.75% over the last week. Smith & Wesson Brands was the among the top losers in the aerospace & defense industry, dropping -20.32% yesterday.

Smith & Wesson Brands shares are trading lower after Lake Street and Craig-Hallum both downgraded the stock from Buy to Hold and cut their respective price targets from $18 to $13.

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

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

Smith & Wesson Brands's stock has dropped -23.63% in the past year. It has underperformed other stocks in the defense industry by -50 percentage points.

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 gained 2.73% in the past year. It has underperformed other stocks in the defense industry by -23 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 35.77% in the past year. It has overperformed other stocks in the defense industry by 10 percentage points.