10 Defense Stocks to Buy That Are Too Cheap to Ignore

Published on October 21, 2022 at 9:17 am by Ramish Cheema in Hedge Funds, News

In this piece, we will take a look at the ten best defense stocks to buy that are too cheap to ignore. If you want to skip our introduction to the industry and take a look at the top stocks in this list, then head on over to 5 Defense Stocks to Buy That Are Too Cheap to Ignore.

The defense sector in America is one of the most advanced in the world, and it has enabled the country to retain its military edge globally for the better part of this century. The U.S. defense budget sat at a whopping $801 billion in 2021, as it continued to be larger than the next nine countries on the list. On the back of this large spending, which has also drawn criticisms from several quarters, research reports paint a rosy growth trajectory for the defense industry.

One report, which comes courtesy of Research and Markets, estimates that the defense sector will have a compounded annual growth rate (CAGR) of 0.5% going forward into 2027. While this might appear small on the surface, the industry is far more mature and developed than those with high growth rates. The research firm attributes the bulk of this growth to the Air Force, as the service plans to spend on a wide variety of aircraft such as the F-35, F15-EX, and KC-46A tanker. Readers should keep in mind that these are only the aircraft that have been declassified by the Pentagon, and whispers on the street have suggested that a new sixth generation fighter aircraft to supersede the F-22 Raptor is also under development.

Speaking of the Air Force, Mordor Intelligence turns its guns on this segment, in particular, to estimate that the U.S. aerospace and defense market will grow at a much stronger CAGR of 2.37% to sit at a whopping $491 billion by 2027 end. A key portion of this growth will belong to the National Aeronautics and Space Administration (NASA) whose budget allocations have grown over the last seven years, and which is also planning to develop a sustainable presence on the Moon through the Artemis program. Under Artemis, NASA has already awarded a multi-billion dollar contract to Space Exploration Technologies Corporation (SpaceX) for a lunar lander that will land astronauts on the Moon’s surface.

Finally, Research and Markets takes a look at the global defense market to wager that the sector was worth $452 billion in 2021, and between then and 2026, it will grow at a 5.8% CAGR to sit at $605 billion.

In this piece, we will take a break from focusing on companies that lead the industry, and instead focus on defense stocks that are trading at affordable prices. Some of the names on our list are Ducommun Incorporated (NYSE:DCO), Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS), and Embraer S.A. (NASDAQ:ERJ).

Pixabay/Public Domain

Our Methodology

We took a painstaking look at the defense industry to identify its various sub-sectors and then which firms have low share prices. The firms were then analyzed through their financial performance, market strength, technological advantages, and criticality in the defense supply chain. They were then ranked through Insider Monkey’s Q2 2022 survey of 895 hedge funds.

Defense Stocks to Buy That Are Too Cheap to Ignore

10. V2X, Inc. (NYSE:VVX)

Share Price as of October 13, 2022: $36.78

Number of Hedge Fund Holders: N/A

V2X, Inc. (NYSE:VVX) is an American aerospace and defense company that provides smart solutions with a focus on productivity and performance. The company is headquartered in Colorado Springs, Colorado, the United States.

V2X, Inc. (NYSE:VVX)’s free cash flow has consistently grown over the past five years and the latest trailing twelve month reading marks an 18% growth. The firm’s latest quarter saw it bring in $498 million in revenue and $1.41 in non-GAAP earnings per share, with the revenue marking a 5.8% annual growth.

Following the earnings report, Stifel upgraded the company’s share price target and share price ratings. The price was raised by $3 to sit at $45 and the rating was upgraded to Buy from Hold in August 2022 as the investment firm was impressed by the firm’s revenue guidance for 2022. V2X, Inc. (NYSE:VVX) expects to earn $3.6 billion in revenue this year and it has contracts with agencies such as NASA, which procures $500 million of services from the firm.

Along with Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS), Ducommun Incorporated (NYSE:DCO), and Embraer S.A. (NASDAQ:ERJ), V2X, Inc. (NYSE:VVX) is a great cheap defense stock.

9. Air Industries Group (NYSE:AIRI)

Share Price as of October 13, 2022: $5.20

Number of Hedge Fund Holders: 2

Air Industries Group (NYSE:AIRI) is an American defense company that provides a wide variety of complex structural parts and assemblies for jet aircraft and helicopters. These include landing gears, arresting gears, engine mounts, flight controls, and throttle quadrants. The firm s headquartered in Bay Shore, New York.

Air Industries Group (NYSE:AIRI)’s latest fiscal quarter saw the firm bring in $14 million in revenue which marked 16% in growth. At the same time, its gross profit and operating income stood at $2.4 million and $250,000 and marked 17% and 20% growth, respectively.

One of Air Industries Group (NYSE:AIRI)’s largest customers is the DoD, and the firm provides components for the F-35 aircraft. Over its lifetime, 3,000 units of this aircraft are estimated to be built, which provides a stable revenue flow for the firm if it continues the contracts. Insider Monkey’s Q2 2022 survey of 895 hedge funds saw two as having held Air Industries Group (NYSE:AIRI)’s shares.

Jim Simons’ Renaissance Technologies is the company’s largest investor in our database with a $15,000 stake that comes via 21,500 shares.

8. Taylor Devices, Inc. (NASDAQ:TAYD)

Share Price as of October 13, 2022: $10.8

Number of Hedge Fund Holders: 2

Taylor Devices, Inc. (NASDAQ:TAYD) is an American company headquartered in North Tonawanda, New York. The firm manufactures and sells a variety of products such as fluidicshoks which are used by the defense segment as shock absorbers, and vibration dampers used in aircraft and ships.

Taylor Devices, Inc. (NASDAQ:TAYD)’s latest fiscal quarter saw the firm bring in $9 million in revenue for a 24% annual growth and $0.29 in GAAP earnings per share. A key point about the company is that it is debt free, and its latest balance sheet shows that it has a cash balance of $21 million, providing it with sufficient cushion for its operating expenses which stood at $1.8 million as of the latest quarter.

Additionally, 36% of Taylor Devices, Inc. (NASDAQ:TAYD)’s sales are for the aerospace and defense segment, and the vast majority (82%) come from within the U.S. By the end of this year’s second quarter, two out of the 895 hedge funds polled by Insider Monkey had invested in the company.

Out of these, Jim Simons’ Renaissance Technologies is Taylor Devices, Inc. (NASDAQ:TAYD)’s largest investor through a $338,000 stake that comes via 38,862 shares.

7. Sypris Solutions, Inc. (NASDAQ:SYPR)

Share Price as of October 13, 2022: $1.97

Number of Hedge Fund Holders: 3

Sypris Solutions, Inc. (NASDAQ:SYPR) is an American company that sells a variety of products to the defense industry such as circuit card assembly services for radars, navigation systems, weapons systems, and ground systems. It is headquartered in Louisville, Kentucky.

Sypris Solutions, Inc. (NASDAQ:SYPR)’s largest customer is the aerospace giant Northrop Grumman which represents 22% of its revenue. The company’s business model allows the firm to rake in significant prepayments from customers to let it set up its equipment for production runs.

Sypris Solutions, Inc. (NASDAQ:SYPR)’s latest quarter saw its backlog jump by a whopping 77% annually, which was fueled by its electronics components for the defense industry. The company also won a follow on contract worth multi-million dollars from the Pentagon for a single seat, all weather, multirole, stealth aircraft, which according to management will be purchased by the Defense Department until 2044.

Insider Monkey’s Q2 2022 survey of 895 hedge funds revealed that three had owned Sypris Solutions, Inc. (NASDAQ:SYPR)’s shares.

Out of these, Jim Simons’ Renaissance Technologies is Sypris Solutions, Inc. (NASDAQ:SYPR)’s largest investor. It owns 894,532 shares that are worth $2 million.

6. Intevac, Inc. (NASDAQ:IVAC)

Share Price as of October 13, 2022: $4.36

Number of Hedge Fund Holders: 11

Intevac, Inc. (NASDAQ:IVAC) is an American company that manufactures and sells thin film processing systems for small substrates. The firm is headquartered in Santa Clara, California. Its defense offerings include high-sensitivity night vision sensors, cameras and systems.

Intevac, Inc. (NASDAQ:IVAC)’s latest quarter saw the firm beat revenue forecasts and post $9 million in revenue. At the same time, the firm posted strong gross margins of 48% and received $22 million in new orders that saw its backlog grow to $100 million. It expects to bring in $200 million in revenue through its hard disk segment through 2025.

Intevac, Inc. (NASDAQ:IVAC)’s strong order backlog was at a 12 year high during the quarter. By the end of this year’s second quarter, 11 out of the 895 hedge funds polled by Insider Monkey had held a stake in the company.

Intevac, Inc. (NASDAQ:IVAC)’s largest investor is Chuck Royce’s Royce & Associates which owns 2.2 million shares that are worth $10 million.

Ducommun Incorporated (NYSE:DCO), Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS), and Embraer S.A. (NASDAQ:ERJ) are met by Intevac, Inc. (NASDAQ:IVAC) in our list of top cheap defense stocks.

Click to continue reading and see 5 Defense Stocks To Buy That Are Too Cheap To Ignore.

AI, Tariffs, Nuclear Power: One Undervalued Stock Connects ALL the Dots (Before It Explodes!)

Published on June 23, 2025 at by Inan Dogan, PhD

Artificial intelligence is the greatest investment opportunity of our lifetime. The time to invest in groundbreaking AI is now, and this stock is a steal!

AI is eating the world—and the machines behind it are ravenous.

Each ChatGPT query, each model update, each robotic breakthrough consumes massive amounts of energy. In fact, AI is already pushing global power grids to the brink.

Wall Street is pouring hundreds of billions into artificial intelligence—training smarter chatbots, automating industries, and building the digital future. But there’s one urgent question few are asking:

Where will all of that energy come from?

AI is the most electricity-hungry technology ever invented. Each data center powering large language models like ChatGPT consumes as much energy as a small city. And it’s about to get worse.

Even Sam Altman, the founder of OpenAI, issued a stark warning:

“The future of AI depends on an energy breakthrough.”

Elon Musk was even more blunt:

“AI will run out of electricity by next year.”

As the world chases faster, smarter machines, a hidden crisis is emerging behind the scenes. Power grids are strained. Electricity prices are rising. Utilities are scrambling to expand capacity.

And that’s where the real opportunity lies…

One little-known company—almost entirely overlooked by most AI investors—could be the ultimate backdoor play. It’s not a chipmaker. It’s not a cloud platform. But it might be the most important AI stock in the US owns critical energy infrastructure assets positioned to feed the coming AI energy spike.

As demand from AI data centers explodes, this company is gearing up to profit from the most valuable commodity in the digital age: electricity.

The “Toll Booth” Operator of the AI Energy Boom

It owns critical nuclear energy infrastructure assets, positioning it at the heart of America’s next-generation power strategy.
It’s one of the only global companies capable of executing large-scale, complex EPC (engineering, procurement, and construction) projects across oil, gas, renewable fuels, and industrial infrastructure.
It plays a pivotal role in U.S. LNG exportation—a sector about to explode under President Trump’s renewed “America First” energy doctrine.

Trump has made it clear: Europe and U.S. allies must buy American LNG.

And our company sits in the toll booth—collecting fees on every drop exported.

But that’s not all…

As Trump’s proposed tariffs push American manufacturers to bring their operations back home, this company will be first in line to rebuild, retrofit, and reengineer those facilities.

AI. Energy. Tariffs. Onshoring. This One Company Ties It All Together.

While the world is distracted by flashy AI tickers, a few smart investors are quietly scooping up shares of the one company powering it all from behind the scenes.

AI needs energy. Energy needs infrastructure.

And infrastructure needs a builder with experience, scale, and execution.

This company has its finger in every pie—and Wall Street is just starting to notice.

Wall Street is noticing this company also because it is quietly riding all of these tailwinds—without the sky-high valuation.

While most energy and utility firms are buried under mountains of debt and coughing up hefty interest payments just to appease bondholders…

This company is completely debt-free.

In fact, it’s sitting on a war chest of cash—equal to nearly one-third of its entire market cap.

It also owns a huge equity stake in another red-hot AI play, giving investors indirect exposure to multiple AI growth engines without paying a premium.

And here’s what the smart money has started whispering…

The Hedge Fund Secret That’s Starting to Leak Out

This stock is so off-the-radar, so absurdly undervalued, that some of the most secretive hedge fund managers in the world have begun pitching it at closed-door investment summits.

They’re sharing it quietly, away from the cameras, to rooms full of ultra-wealthy clients.

Why? Because excluding cash and investments, this company is trading at less than 7 times earnings.

And that’s for a business tied to:

The AI infrastructure supercycle
The onshoring boom driven by Trump-era tariffs
A surge in U.S. LNG exports
And a unique footprint in nuclear energy—the future of clean, reliable power

You simply won’t find another AI and energy stock this cheap… with this much upside.

This isn’t a hype stock. It’s not riding on hope.

It’s delivering real cash flows, owns critical infrastructure, and holds stakes in other major growth stories.

This is your chance to get in before the rockets take off!

Disruption is the New Name of the Game: Let’s face it, complacency breeds stagnation.

AI is the ultimate disruptor, and it’s shaking the foundations of traditional industries.

The companies that embrace AI will thrive, while the dinosaurs clinging to outdated methods will be left in the dust.

As an investor, you want to be on the side of the winners, and AI is the winning ticket.

The Talent Pool is Overflowing: The world’s brightest minds are flocking to AI.

From computer scientists to mathematicians, the next generation of innovators is pouring its energy into this field.

This influx of talent guarantees a constant stream of groundbreaking ideas and rapid advancements.

By investing in AI, you’re essentially backing the future.

The future is powered by artificial intelligence, and the time to invest is NOW.

Don’t be a spectator in this technological revolution.

Dive into the AI gold rush and watch your portfolio soar alongside the brightest minds of our generation.

This isn’t just about making money – it’s about being part of the future.

So, buckle up and get ready for the ride of your investment life!

Act Now and Unlock a Potential 100+% Return within 12 to 24 months.

We’re now offering month-to-month subscriptions with no commitments.

For a ridiculously low price of just $9.99 per month, you can unlock our in-depth investment research and exclusive insights – that’s less than a single fast food meal!

Here’s why this is a deal you can’t afford to pass up:

Access to our Detailed Report on our AI, Tariffs, and Nuclear Energy Stock with 100+% potential upside within 12 to 24 months
BONUS REPORT on our #1 AI-Robotics Stock with 10000% upside potential: Our in-depth report dives deep into our #1 AI/robotics stock’s groundbreaking technology and massive growth potential.
One New Issue of Our Premium Readership Newsletter: You will also receive one new issue per month and at least one new stock pick per month from our monthly newsletter’s portfolio over the next 12 months. These stocks are handpicked by our research director, Dr. Inan Dogan.
One free upcoming issue of our 70+ page Quarterly Newsletter: A value of $149
Bonus Content: Premium access to members-only fund manager video interviews
Ad-Free Browsing: Enjoy a month of investment research free from distracting banner and pop-up ads, allowing you to focus on uncovering the next big opportunity.
Lifetime Price Guarantee: Your renewal rate will always remain the same as long as your subscription is active.
30-Day Money-Back Guarantee: If you’re not absolutely satisfied with our service, we’ll provide a full refund within 30 days, no questions asked.

Space is Limited! Only 1000 spots are available for this exclusive offer. Don’t let this chance slip away – subscribe to our Premium Readership Newsletter today and unlock the potential for a life-changing investment.

Here’s what to do next:

1. Head over to our website and subscribe to our Premium Readership Newsletter for just $9.99.

2. Enjoy a month of ad-free browsing, exclusive access to our in-depth report on the Trump tariff and nuclear energy company as well as the revolutionary AI-robotics company, and the upcoming issues of our Premium Readership Newsletter.

3. Sit back, relax, and know that you’re backed by our ironclad 30-day money-back guarantee.

Don’t miss out on this incredible opportunity! Subscribe now and take control of your AI investment future!

Subscribe Now!

No worries about auto-renewals! Our 30-Day Money-Back Guarantee applies whether you’re joining us for the first time or renewing your subscription a month later!

Insider Monkey Ads

A New Dawn is Coming to U.S. Stocks

Published on June 13, 2025 at by Insider Monkey Staff

I work for one of the largest independent financial publishers in the world – representing over 1 million people in 148 countries.

We’re independently funding today’s broadcast to address something on the mind of every investor in America right now…

Should I put my money in Artificial Intelligence?

Here to answer that for us… and give away his No. 1 free AI recommendation… is 50-year Wall Street titan, Marc Chaikin.

Marc’s been a trader, stockbroker, and analyst. He was the head of the options department at a major brokerage firm and is a sought-after expert for CNBC, Fox Business, Barron’s, and Yahoo! Finance…

But what Marc’s most known for is his award-winning stock-rating system. Which determines whether a stock could shoot sky-high in the next three to six months… or come crashing down.

That’s why Marc’s work appears in every Bloomberg and Reuters terminal on the planet…

And is still used by hundreds of banks, hedge funds, and brokerages to track the billions of dollars flowing in and out of stocks each day.

He’s used this system to survive nine bear markets… create three new indices for the Nasdaq… and even predict the brutal bear market of 2022, 90 days in advance.

Click to continue reading…

Insider Monkey Ads

Markets

Insider Trading

Hedge Funds

Retirement

Opinion

Log In

Sign Up