10 Best Aerospace and Defense Stocks to Buy Now

4. The Boeing Company (NYSE:BA)

Number of Hedge Fund Holders: 54

The Boeing Company (NYSE:BA) is a leading aerospace company that manufactures commercial airplanes, space systems, and defense products for customers in more than 150 countries. As of 2022, it is the fifth largest defense contractor in the world, with defense-related sales of $31 billion, representing nearly half of the company’s overall revenue. The company has been under severe pressure after a door plug of an Alaska Airlines 737 Max 9 flight fell off after takeoff in January. It was the worst possible start to the year for the aerospace giant. Since the incident, there has been a slowdown in the production of airplanes, with an increased focus on safety.

As a result, during the first quarter of 2024, the company reported a net loss of $355 million. This, however, was less than the loss industry analysts anticipated, resulting in a negative EPS of -$0.56 against forecasts of -$1.43. The Boeing Company (NYSE:BA)’s financial performance during the quarter has shown resilience and signs of improvement, marked by a resurgence across the aviation industry. Despite that, Moody’s Investors Service is reportedly concerned that Boeing will struggle to deliver the 737 volumes that it requires to sell to retire debt and expand its free cash flow. Another bear case against the company is the executive-level shake-up that is taking place, causing consternation among some investors.

Most experts, however, believe that it is too big a company to fail, and with a backlog of orders worth $500 billion and international travel growing every year, The Boeing Company (NYSE:BA) is likely to turn things around in 2025 after the headwinds are over. The aerospace giant is also working on several defense-related projects, including the US Air Force’s Next Generation Air Dominance (NGAD) program, which aims to develop a sixth-generation fighter jet to replace the F-22 Raptor by 2030.

The stock’s analyst ratings range between Hold to Strong Buy, with an average price target of $223, at an upside of 24.5% from its current level. Furthermore, while hedge fund sentiment has decreased since the last quarter of 2023, there is still a sizable number of hedge fund investors in the stock, making The Boeing Company (NYSE:BA) one of the best stocks to buy now in the aerospace and defense industry.