10 Best Defense Stocks To Buy Now

06. General Dynamics Corporation (NYSE:GD)

Number of Hedge Fund Holders: 48

General Dynamics Corporation (NYSE:GD) is one of the world’s leading aerospace and defense companies, known for delivering cutting-edge solutions across various defense sectors. The company’s diverse portfolio includes nuclear-powered submarines, land combat systems, and advanced information technology services, making it a crucial player in the defense industry. Its strong presence in defense and national security positions it among the top defense stocks to buy now.

In the second quarter of 2024, General Dynamics Corporation (NYSE:GD) reported earnings of $3.26 per share, slightly below Wall Street expectations of $3.28, due to the delay in the delivery of a few G700 aircraft. Despite this minor miss, the company demonstrated strong financial growth, reporting revenues of $11.98 billion, up 18% year-over-year. All four business segments—Aerospace, Marine Systems, Combat Systems, and Technologies—contributed to this impressive performance, with the Aerospace segment alone experiencing a 51% revenue surge. Additionally, the company’s operating earnings increased by 20.2%, reaching $1.16 billion, signaling efficient cost management and favorable operational leverage.

The defense side of the business also saw robust growth. Combat Systems reported a 19% increase in revenue and a 25% rise in earnings, driven by growing demand for ammunition and vehicles like the Abrams main battle tank. Marine Systems, another key segment, posted a 13% revenue increase, primarily due to Columbia-class submarine construction and continued demand from the U.S. Navy. These segments collectively underscore General Dynamics Corporation (NYSE:GD) dominance in the defense sector, backed by its solid backlog of $91.3 billion and an expanding order pipeline. As the defense sector continues to experience heightened demand, General Dynamics Corporation (NYSE:GD) balanced portfolio, strong financial fundamentals, and steady revenue growth make it a compelling investment option. Its ability to deliver across its defense segments ensures that the company is well-positioned to capitalize on ongoing defense and aerospace contracts.