10 Best Large Cap Defense Stocks to Buy Now

6. General Dynamics Corporation (NYSE:GD)

Market Cap: $65.41 billion

Number of Hedge Fund Holders: 48

General Dynamics Corporation (NYSE:GD) is a leading global aerospace and defense company, operating through its Aerospace, Marine Systems, Combat Systems, and Technologies segments.

On December 20, the company announced receiving a five-year, $5.6 billion Mission Partner Environments (MPEs) contract. Under the agreement, General Dynamics Corporation (NYSE:GD) would modernize, integrate, operate, and sustain the DoD’s MPE to ensure that the military and its partners can have secure communication and share real-time information at all levels to make rapid decisions to adapt to changing mission dynamics.

In November, General Dynamics Corporation (NYSE:GD)’s Gulfstream Aerospace business unit clinched a $991 million contractor logistics support services (CLS) contract from the Air Force for C-20 and C-37 fleets. The seven-year contract will also provide services to the Navy, Army, Marine Corps, and Coast Guard. It includes a variety of support, including global maintenance, repair, component overhaul, and modification services.

Amid the turbulent situation in Ukraine and the Middle East, several countries are spending hefty amounts to secure their borders. This has resulted in a surge in demand for fighter jets and military aircraft and with it the need for their repair and maintenance, which sets General Dynamics Corporation (NYSE:GD) well-positioned to make gains in this space.

On January 29, the company reported strong results for the full year 2024, with steady growth in revenue and earnings across all business segments. Net earnings were posted at $3.8 billion, up 14.1% year-over-year, while revenue surged 12.9% from 2023, to reach $47.7 billion.

General Dynamics Corporation (NYSE:GD) is one of the best large cap stocks to buy. Wall Street analysts are bullish on the company, with a consensus Buy rating, and an average share price upside potential of nearly 25%.