10 Best Large Cap Defense Stocks to Buy Now

7. Northrop Grumman Corporation (NYSE:NOC)

Market Cap: $63.53 billion

Number of Hedge Fund Holders: 48

Northrop Grumman Corporation (NYSE:NOC) is one of the largest defense contractors in the world. It is the manufacturer of the B-21 Raider for the United States Air Force (USAF), which is intended to replace the aging B-1B Lancer and B-2 Spirit fleets.

On February 12, Northrop Grumman Corporation (NYSE:NOC) secured two contracts worth $1.4 billion to modernize the air and missile defense capabilities of the United States and Poland. Both contracts focus on the Integrated Battle Command System (IBCS) to help Washington and its allies stay ahead of emerging threats.

The company is also recognized as a leader in autonomous aerial systems. It has developed the MQ-4C Triton, which is one of the most advanced maritime ISR UAVs deployed today. On February 6, it was reported that Northrop Grumman Corporation (NYSE:NOC) had completed testing of the third MQ-4C Triton ordered by Australia, and was preparing to ferry the aircraft to Maryland for calibration testing before delivery later this year.

Northrop Grumman Corporation (NYSE:NOC) is also working on several critical contracts for the US Space Force. In December 2024, the defense contractor was awarded a contract extension for Phase 2 of its Next Gen OPIR Polar (NGP). The program is aimed at providing coverage of the North Pole to detect missile threats from adversaries.

On January 30, the company reported strong results for fiscal 2024. Sales climbed 4% year-over-year to reach $41 billion, driven by continued robust demand for NOC’s weapons. Net awards for the year totaled $50.6 billion, while it ended the year with a record backlog of $91.5 billion.

Wall Street analysts are bullish on Northrop Grumman Corporation (NYSE:NOC), with a consensus Buy rating and an average share price upside potential of over 25%, making it one of the best large cap stocks to buy.