10 Best American Defense Stocks To Buy According to Hedge Funds

2. Lockheed Martin Corporation (NYSE:LMT)

Number of Hedge Fund Holders: 56

Lockheed Martin Corporation (NYSE:LMT), formed through the 1995 merger of Lockheed Corporation and Martin Marietta, is a global leader in aerospace, defense, arms, information security, and technology. The company operates across four key segments: Aeronautics, Missiles and Fire Control, Rotary and Mission Systems, and Space.

TD Cowen recently raised its price target for Lockheed Martin Corporation (NYSE:LMT) from $560 to $610, maintaining a Buy rating on the stock. This adjustment followed Lockheed Martin’s third-quarter EPS, which exceeded analyst expectations, though the company’s medium-term sales growth is viewed as modest compared to the anticipated mid-single-digit growth. TD Cowen emphasized the company’s strong position in the defense industry, with a particular focus on its international sales and short-cycle leverage in the Missiles and Fire Control (MFC) segment.

Looking ahead, Lockheed Martin Corporation (NYSE:LMT) is increasing its 2024 profit and sales outlook, projecting earnings per share of $26.65 and full-year sales of $71.25 billion. Despite some concerns in the Aeronautics segment and a 3% sales drop in Q3, the board also approved a quarterly dividend increase and expanded its share buyback program by $3 billion.

Moreover, the defense leader managed to secure several significant contracts, including a $297 million NASA deal to develop GeoXO Lightning Mapper instruments for the National Oceanic and Atmospheric Administration (NOAA).