11 Best American Defense Stocks to Buy Now

8. Howmet Aerospace Inc. (NYSE:HWM)

Number of Hedge Fund Holders: 58

Howmet Aerospace Inc. (NYSE:HWM) manufactures components for aircraft engines, fasteners, aluminum wheels for trucks, and titanium structures for aerospace and defense applications.

The company recently reported strong results for the fourth quarter and full year 2024. Driven by robust growth in the commercial aerospace business, Q4 revenue was up 9% year-over-year to $1.9 billion. Net income was posted at $314 million, growing 33% from last year.

Howmet Aerospace Inc. (NYSE:HWM)’s full year revenue stood at $7.4 billion, increasing 12% from last year. Net income surged 57% to $1.2 billion. Operating income margin stood at 22%. GAAP EPS for the year was logged at $2.81, compared to $1.83 per share in the prior year.

The company also shared its revised guidance for fiscal 2025. It raised revenue growth expectations to 8% year-over-year and anticipates improved profitability and cash generation. The company is seeing another strong year ahead, amid rising OEM production rates, continued demand for commercial aviation and engine spare parts, and growth in the defense aerospace aftermarkets.

Following the results, several analysts raised their price targets for Howmet Aerospace Inc. (NYSE:HWM), while maintaining their Buy and Strong Buy ratings. According to Insider Monkey’s database for Q4 2024, 58 hedge funds held a stake in the company, up from 45 at the end of the third quarter. It is among the best defense stocks to buy now.