12 Best Aerospace and Defense Stocks to Buy According to Analysts

8. Ducommun Incorporated (NYSE:DCO)

Number of Hedge Fund Holders: 18

Analyst Upside Potential: 38.82%

Ducommun Incorporated (NYSE:DCO) is an international provider of innovative manufacturing solutions for the aerospace, defense, and industrial markets. It operates through two main segments including the Electronic System and Structural Systems. The Electronics System segment deals with designing, engineering, and manufacturing high-reliability electronic and electromechanical products that are used in aerospace and defense. Whereas, Structural Systems deal in large, complex contoured aero-structure components and assemblies.

On March 14, RBC Capital analyst Kenneth Herbert maintained a Buy rating on the stock with a price target of $72. During the fiscal fourth quarter of 2024, Ducommun Incorporated (NYSE:DCO) demonstrated significant financial and strategic progress towards its Vision 2027 strategy. The strategy focuses on increasing revenue from engineered products, optimizing operations, and expanding its presence in key markets. The company achieved a record full-year revenue of $786 million in 2024, reflecting a 3.9% increase year-over-year. The fiscal fourth quarter alone saw 2.6% growth to $197.3 million, marking the 15th consecutive quarter of year-over-year revenue growth.

The prospects of Ducommun Incorporated (NYSE:DCO) remain bright as the consolidated backlog stood at $1.06 billion at the end of Q4 2024 after growing by $67 million year-over-year. Moreover, the defense backlog increased by $98 million to $625 million. It is one of the best aerospace and defense stocks to buy according to analysts.