10 Best American Defense Stocks To Buy According to Hedge Funds

7. Howmet Aerospace Inc. (NYSE:HWM)

Number of Hedge Fund Holders: 45

Howmet Aerospace Inc. (NYSE:HWM) is an American aerospace company that provides essential engineered solutions for the aerospace, defense, and transportation industries. Its diverse portfolio includes engine products, fastening systems, engineered structures, and forged wheels, which play a key role in defense applications such as fighter jets, military aircraft engines, and industrial gas turbines.

In its Q2 2024 financial report, Howmet Aerospace Inc. (NYSE:HWM) exceeded analysts’ expectations, posting earnings per share of $0.67, surpassing the estimate of $0.601 and marking a 52% year-over-year increase. The company’s revenue for the quarter reached $1.93 billion, a strong 14% year-over-year growth, with commercial aerospace and defense segments making significant contributions. Notably, its defense aerospace revenue saw an 11% increase, fueled by high demand for fighter programs and engine spares.

On October 18, Truist Securities raised the price target for Howmet Aerospace Inc. (NYSE:HWM) shares to $123, up from the previous target of $105, while maintaining a Buy rating. This adjustment follows the company’s Q3 2024 guidance, which projects revenues at the midpoint of $1.855 billion, EBITDA at $465 million, and adjusted EPS at $0.64. In the past 30 days, the consensus EPS estimate for the quarter has been revised up by 0.2%.

Janus Henderson Contrarian Fund stated the following regarding Howmet Aerospace Inc. (NYSE:HWM) in its Q2 2024 investor letter:

“Howmet Aerospace Inc. (NYSE:HWM), a manufacturer of specialized aircraft components, was another top contributor to relative performance. The stock experienced a notable performance boost after beating first-quarter earnings expectations and raising full-year guidance. The company benefited from a resurgence in air travel, pushing commercial aerospace sales up by 23%. Despite the potential sales impact from Boeing’s 737 MAX production challenges, the extended operation of existing airline fleets could lead to heightened demand for spare parts, offsetting concerns.”