10 Best Large Cap Defense Stocks to Buy Now

2. TransDigm Group Incorporated (NYSE:TDG)

Market Cap: $73.71 billion

Number of Hedge Fund Holders: 71

TransDigm Group Incorporated (NYSE:TDG) is an aerospace company that manufactures engineered aircraft components for commercial and military aircraft. Its share price has more than doubled over the last five years. The company was recently listed among the 15 Highest-Priced Stocks Right Now.

TransDigm Group Incorporated (NYSE:TDG) executed notable acquisitions in 2024, aimed at further solidifying its position in the aerospace and defense markets. These are also expected to add significant future revenue for the company. In June last year, it acquired Communications & Power Industries’ Electron Device business for $1.385 billion. Later, in July, it completed the $655 million acquisition of Raptor Scientific.

The company’s financial position remains robust. On February 4, TransDigm Group Incorporated (NYSE:TDG) declared results for the first quarter of fiscal 2025. It reported a net income of $493 million, up 29% year-over-year. This was driven by a 12% increase in net sales from last year. Adjusted EPS stood at $7.83, growing 9% from the prior year’s quarter.

Wall Street analysts are bullish on the stock, with a consensus Buy rating and an average share price upside potential of 12%. According to Insider Monkey’s database for Q3 2024, 71 hedge funds held a stake in the company. AltaRock Partners was the largest investor in TransDigm Group Incorporated (NYSE:TDG), with holdings valued at over $1.26 billion, as of December 31, 2024.