11 Best American Defense Stocks to Buy Now

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1. The Boeing Company (NYSE:BA)

Number of Hedge Fund Holders: 103

The Boeing Company (NYSE:BA) is a leading aerospace company that manufactures commercial airplanes, space systems, and defense equipment for customers in over 150 countries.

The company’s challenges from 2024 remain unabated this year. The stock has slumped by over 12% in the past month, with new tariffs imposed by the Trump administration further aggravating the situation.

Investor sentiment has also been dented by a federal judge accusing The Boeing Company (NYSE:BA) of prioritizing profit over passenger and aircraft safety, and ruling that the company must face shareholder class action for the 737 MAX 9 blowout incident in January 2024.

During a Fox News broadcast on March 14, Transportation Secretary, Sean Duffy, also stated that The Boeing Company (NYSE:BA) had lost the trust of the American people after the incident and two fatal crashes in 2018 and 2019.

“When you breach the trust of the American people with that safety and with your manufacturing, we’re going to put the screws to you to make sure you change your ways and start doing things right.”

Despite a grim situation, most analysts remain bullish on the stock as they believe The Boeing Company (NYSE:BA) is too big a company to fail and considering its order backlog of $521 billion, the stock is bound to recover once the headwinds are over. In a recent positive development, the company was awarded a $358 million contract to enhance capabilities of the Royal Australian Air Force’s E-7A aircraft.

Overall, The Boeing Company (NYSE:BA) ranks first among the 11 Best American Defense Stocks to Buy Now. While we acknowledge the potential of defense companies, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than BA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires 

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