10 Best Large Cap Defense Stocks to Buy Now

4. HEICO Corporation (NYSE:HEI)

Market Cap: $27.05 billion

Number of Hedge Fund Holders: 57

HEICO Corporation (NYSE:HEI) is an aerospace and technology company that manufactures jet engines and aircraft parts. It operates in two segments: Flight Support Group and Electronic Technologies Group.

The company is a prime contractor for the U.S. Department of Defense. For the past several decades, it has supported the government through activities such as reverse engineering, manufacturing aircraft engines and parts, and repair and maintenance services.

HEICO Corporation (NYSE:HEI) is also recognized as an important player in the space industry, as it is credited for supplying critical mission components for India’s Chandrayaan-3 spacecraft, which landed on the Moon in 2023.

On December 17, HEICO Corporation (NYSE:HEI) reported strong results for full-year 2024, with net income increasing 27% year-over-year to reach a record $514.1 million. The company also declared a semiannual cash dividend of 11 cents per share. This marked HEICO’s 93rd successive semiannual cash dividend since 1979, which reflected its strong commitment to shareholder returns.

Looking ahead, HEICO Corporation (NYSE:HEI) forecasts net sales growth across both business segments in 2025 in anticipation of sustained demand for a majority of its products. Wall Street analysts are also bullish on the stock, with a consensus Buy rating and an average share price upside potential of 22%.

Investor sentiment continues to improve as well. According to Insider Monkey’s database for Q3 2024, 57 hedge funds held a stake in the company, up from 53 at the end of the second quarter. HEICO Corporation (NYSE:HEI) is among the best large cap stocks to buy.