10 Best American Defense Stocks To Buy According to Hedge Funds

4. HEICO Corporation (NYSE:HEI)

Number of Hedge Fund Holders: 53

HEICO Corporation (NYSE:HEI), a leader in aerospace and electronics, manufactures products used in aircraft, spacecraft, defense systems, medical devices, and telecommunications equipment.

In its Q3 2024 report, HEICO Corporation (NYSE:HEI) reported impressive financial results, with consolidated operating income up 45% and net sales increasing by 37%. The company posted a record net income of $136.6 million, reflecting 34% growth. This strong performance prompted Deutsche Bank and Baird to raise their price targets, both maintaining positive ratings. Despite a slight decline in sales from the Electronic Technologies Group (ETG) due to weaker demand in electronics and medical products, HEICO Corporation (NYSE:HEI) remains confident in its future growth.

Additionally, the company completed the acquisition of a 92.5% stake in Marway Power Solutions on October 1, a company specializing in power distribution systems for critical applications. Although the financial terms were not disclosed, HEICO Corporation (NYSE:HEI) expects the acquisition to positively impact earnings in the next year.