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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:

Virtra (NASDAQ:VTSI) 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 19 out of 33 due diligence checks and has strong fundamentals. Virtra has seen its stock return 146.27% over the past year, overperforming other defense stocks by 135 percentage points.

Virtra has an average 1 year price target of $16.00, an upside of 21.21% from Virtra's current stock price of $13.20.

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.

Huntington Ingalls Industries (NYSE:HII) is the second best defense stock with a Zen Score of 51, which is 22 points higher than the defense industry average of 29. It passed 18 out of 38 due diligence checks and has strong fundamentals. Huntington Ingalls Industries has seen its stock return 38.58% over the past year, overperforming other defense stocks by 28 percentage points.

Huntington Ingalls Industries has an average 1 year price target of $292.50, an upside of 5.61% from Huntington Ingalls Industries's current stock price of $276.97.

Huntington Ingalls Industries stock has a consensus Buy recommendation according to Wall Street analysts. Of the 2 analysts covering Huntington Ingalls Industries, 50% have issued a Strong Buy rating, 0% have issued a Buy, 50% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Northrop Grumman (NYSE:NOC) is the third best defense stock with a Zen Score of 49, which is 20 points higher than the defense industry average of 29. It passed 17 out of 38 due diligence checks and has strong fundamentals. Northrop Grumman has seen its stock return 6.98% over the past year, underperforming other defense stocks by -4 percentage points.

Northrop Grumman has an average 1 year price target of $483.00, an upside of 0.53% from Northrop Grumman's current stock price of $480.45.

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.

Out of 20 defense stocks that have issued dividends in the past year, the 3 defense stocks with the highest dividend yields are:

National Presto Industries (NYSE:NPK) has an annual dividend yield of 5.42%, which is 4 percentage points higher than the defense industry average of 1.55%. 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.

Park Aerospace (NYSE:PKE) has an annual dividend yield of 3.39%, which is 2 percentage points higher than the defense industry average of 1.55%. 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.

Smith & Wesson Brands (NASDAQ:SWBI) has an annual dividend yield of 2.8%, which is 1 percentage points higher than the defense industry average of 1.55%.

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

Defense stocks were up 0.55% in the last day, and up 3.06% over the last week. Kratos Defense & Security Solutions was the among the top gainers in the aerospace & defense industry, gaining 9.11% yesterday.

Kratos Defense & Security Solutions shares are trading higher after Raymond James upgraded the stock from Outperform to Strong Buy and raised its price target from $20 to $27.

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

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 51 points higher than the defense industry average of 20. It passed 5 out of 7 valuation due diligence checks.

Cpi Aerostructures's stock has dropped -23.63% in the past year. It has underperformed other stocks in the defense industry by -35 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 51 points higher than the defense industry average of 20. It passed 5 out of 7 valuation due diligence checks.

Innovative Solutions & Support's stock has gained 1.73% in the past year. It has underperformed other stocks in the defense industry by -9 percentage points.

Virtra (NASDAQ:VTSI) is the third most undervalued defense stock based on WallStreetZen's Valuation Score. Virtra has a valuation score of 71, which is 51 points higher than the defense industry average of 20. It passed 5 out of 7 valuation due diligence checks.

Virtra's stock has gained 146.27% in the past year. It has overperformed other stocks in the defense industry by 135 percentage points.