10 Best Mid Cap Defense Stocks to Buy According to Analysts

5. Karman Holdings Inc. (NYSE:KRMN)

Market Cap: $4.10 billion

Share Price Upside Potential: 27.30%

Karman Holdings Inc. (NYSE:KRMN) specializes in the manufacturing and sale of mission-critical systems for missile, space, and defense programs. The stock has returned over 13% since its debut on the NYSE on February 13.

Analysts credit the stock’s performance to growing appetite for defense and space firms under the Trump administration, with expectations that the US president would push ahead with a race to the Moon and Mars, given his friendship with Elon Musk. Trump’s ambition to build an ‘American Iron Dome’ also presents an opportunity for Karman Holdings Inc. (NYSE:KRMN) to benefit, given its expertise in areas like hypersonic missile defense.

On April 4, Karman Holdings Inc. (NYSE:KRMN) announced the acquisition of Metal Technology Inc., a firm with expertise in manufacturing specialized refractory metal alloy systems. These play a critical role in optimising the performance of missile programs in ultra-high temperature environments. The strategic move will open the doors to new, classified missile defense programs for the company that align with the DoD’s funding priorities.

Last week, Karman Holdings Inc. (NYSE:KRMN) declared financial results for fiscal 2024. It reported a record revenue of $345.3 million, up 23% year-over-year. Net income was posted at $12.7 million, surging 191.3% from last year. The company ended the year with a record funded backlog of $579.8 million, growing 35.2% compared to the prior fiscal year.

Wall Street analysts are bullish on Karman Holdings Inc. (NYSE:KRMN), with a consensus Strong Buy rating and an average share price upside potential of 27.30%. It is one of the best mid cap stocks to buy right now.