11 Best American Defense Stocks to Buy Now

2. GE Aerospace (NYSE:GE)

Number of Hedge Fund Holders: 101

GE Aerospace (NYSE:GE) is a global aerospace propulsion, services, and systems company, with an installed base of around 25,000 military and 45,000 commercial aircraft engines.

On March 14, the company announced receiving an IDIQ contract worth up to $5 billion from the US Air Force to support Foreign Military Sales (FMS) for the F110-GE-129 engines, which power F-15 and F-16 aircraft operated by American allied nations. The latest agreement reflects GE Aerospace (NYSE:GE)’s commitment to America’s defense partnerships and in ensuring operational readiness of the F-15 and F-16 fleets globally.

Earlier in the month, GE Aerospace (NYSE:GE) also said it plans on investing $1 billion in its US facilities to strengthen manufacturing and innovation. The new investment is nearly twice the amount pledged last year, and is set to improve engine safety, quality, and delivery.

On January 23, GE Aerospace (NYSE:GE) reported impressive results for the fourth quarter of fiscal 2024, with earnings topping Wall Street estimates. The company also projected a major profit surge in 2025, which has attracted investor interest.

According to Insider Monkey’s database for Q4 2024, 101 hedge funds held a stake in the company, making it one of the best defense stocks to buy now. Wall Street analysts are also bullish on the stock, with a consensus Buy rating and an average share price upside potential of 4%.