10 Best Mid Cap Defense Stocks to Buy According to Analysts

4. Hexcel Corporation (NYSE:HXL)

Market Cap: $4.17 billion

Share Price Upside Potential: 34.41%

Hexcel Corporation (NYSE:HXL) is a leader in advanced lightweight composites technology. It develops and markets carbon fiber, honeycomb structures, structural reinforcements, resins, and composite materials and parts for commercial aerospace, defense, space, and industrial applications.

On April 15, Wells Fargo downgraded the stock to Equal Weight and lowered its price target to $55 per share from $63, citing the risk of a slowdown affecting aircraft production and sales. The firm noted Hexcel Corporation (NYSE:HXL)’s high operating leverage, which makes it vulnerable in the case of a slowdown.

Despite the adjustment, Hexcel Corporation (NYSE:HXL)’s share price upside potential stands at over 34%, making it one of the best mid cap stocks to invest in. Recent reports highlight a dramatic increase in insiders growing their holdings in the company over the past 12 months, reflecting their confidence in HXL’s trajectory.

In March, Hexcel Corporation (NYSE:HXL) announced a strategic partnership with FIDAMC, a leading research and technology centre, to drive innovation, research, and development of advanced composite materials. The collaboration between these two organizations is expected to speed up the transition from research to real-life application across multiple industries.

According to Insider Monkey’s database for Q4 2024, 30 hedge funds held a stake in Hexcel Corporation (NYSE:HXL). D E Shaw was the largest investor in the company, with holdings of over $83 million as of December 31, 2024.