10 Best American Defense Stocks To Buy According to Hedge Funds

6. General Dynamics Corporation (NYSE:GD)

Number of Hedge Fund Holders: 48

General Dynamics Corporation (NYSE:GD) is a global leader in aerospace and defense, renowned for delivering innovative solutions across sectors like nuclear-powered submarines, land combat systems, and advanced IT services.

On October 25, RBC Capital Markets raised its price target for General Dynamics Corporation (NYSE:GD) from $320 to $330, maintaining an Outperform rating. The adjustment came after the defense company posted Q3 earnings of $3.35 per share, beating RBC’s estimate of $3.27 but missing the broader market consensus due to lower-than-expected G700 aircraft deliveries. Total revenue for the quarter rose 10%, driven by strong performance in the Aerospace and Marine divisions. The Aerospace segment was notably strong, which RBC sees as a key area for potential margin expansion.

Moreover, General Dynamics Corporation (NYSE:GD) also managed to secure key contracts in September of this year, including $299 million for Pentagon network infrastructure upgrades and $491.6 million from the Space Development Agency.

Looking ahead, General Dynamics Corporation (NYSE:GD) expects a robust fourth quarter and forecasts full-year revenue of approximately $48 billion, with Aerospace sales projected at $12.3 billion and Marine Systems at $13.9 billion.