10 Defense Stocks with the Highest EPS Growth in 5 Years

3. TAT Technologies Ltd. (NASDAQ:TATT)

EPS Growth, Past 5 Years: 61.44%

TAT Technologies Ltd. (NASDAQ:TATT) provides services and products for the commercial and military aerospace and ground defense sectors. It is one of the best defense stocks to buy, considering the company’s substantial EPS growth over the past five years.

On March 26, the company announced financial results for the fiscal 2024. Annual revenue surged 34.1% year-over-year to $152.1 million. Gross profit stood at $33 million, up 47% from last year. Net income increased by 139% to $11.2 million or $1.0 per diluted share. However, cash flow from operations was negative $5.8 million, compared to a positive $2.3 million in the prior year.

Last week, Benchmark raised its price target for TAT Technologies Ltd. (NASDAQ:TATT) to $35 per share from $30 previously while maintaining the stock’s Buy rating. The firm cited the company’s robust financial performance, especially during the fourth quarter, as the reason behind the increase.

However, the stock has yet to find traction among investors. According to Insider Monkey’s database for Q4 2024, only three hedge funds held a stake in the company. Renaissance Technologies was the largest investor in TAT Technologies Ltd. (NASDAQ:TATT), with holdings valued at approximately $4.9 million as of December 31.