This article looks at the 13 best defense stocks to buy according to billionaires. We also discuss how the sector has performed this year in the United States and Europe as countries step up to end the war in Ukraine.
Defense stocks wobbled over the past week after a contentious meeting at the Oval Office between President Trump and the visiting Ukrainian leader, Volodymyr Zelensky as investors hoped for the US-Ukraine minerals deal to be signed.
The sector has struggled since Trump’s return to the White House, amid mixed statements on military expenditure throughout his campaign and the early days of his second stint. Shares fell sharply on February 13 after the President hinted at cutting defense spending in the future. The creation of DOGE is also reshaping investors’ views of the industry.
READ ALSO: 10 Best Large Cap Defense Stocks to Buy Now and Why These 15 Defense Stocks Are Skyrocketing So Far In 2025.
In contrast, European defense stocks have rallied this year as governments faced pressures to increase military expenditure. Several stocks registered double-digit growth during the week of March 3, with some even reaching record highs. Investor sentiment picked up after the European Summit in London, where leaders from the EU and NATO met to express their support for Ukraine, following the recent Zelensky-Trump spat.
Washington has repeatedly called for European countries to spend more on defense, while stressing that the US could no longer foot the bill. EU leaders met in Brussels this Thursday to discuss the ‘ReArm Europe Plan’, which will allow the bloc to mobilize funds up to $860 million through bonds and relaxed rules on borrowing and spending.
European countries are also ramping up defense on an individual-level. A conservative victory in Germany, signaling the shift to the right in Berlin, is also adding to the momentum. According to a Reuters report, parties in talks to form the nation’s next government are already considering setting up a defense fund. Friedrich Merz, Germany’s next chancellor-in-waiting, has also vowed to relax the country’s strict borrowing rules.
Peter Schaffrik, Global Macro Strategist, at RBC Capital Markets stated the following on the ongoing situation:
It is an inflection point and Europe realises it needs to do the heavy lifting. The German elections have opened the door for more spending. The whole Zelensky-Trump meltdown has fast forwarded everything.
With that said, let’s head over to the list of the best defense stocks to buy.
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Methodology
For this article, we scanned Insider Monkey’s Q4 2024 proprietary database of billionaires’ stock holdings and identified defense stocks from the list. From there, we picked the top 13 stocks with the highest number of billionaires having a stake in them. Where two or more stocks were tied on billionaire sentiment, we used the dollar value of billionaire holdings as a tiebreaker between them.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
13 Best Defense Stocks to Buy According to Billionaires
13. TransDigm Group Incorporated (NYSE:TDG)
Number of Billionaires: 9
Billionaire Holdings: $465,048,265
TransDigm Group Incorporated (NYSE:TDG) is an aerospace company that manufactures engineered aircraft components for commercial and military aircraft.
On February 4, TransDigm Group Incorporated (NYSE:TDG) reported a net income of $493 million for the first quarter of fiscal 2025. This represented a 29% increase from last year and was driven by a 12% year-over-year surge in net sales. Adjusted EPS stood at $7.83, growing 9% from the prior year’s quarter.
The strong financial results have led to a bullish sentiment around the stock. Wall Street analysts have a consensus Buy rating for TransDigm Group Incorporated (NYSE:TDG) and anticipate a 7.45% uptick, on average, in its share price. On February 24, UBS upgraded the stock’s rating to Buy from Neutral, citing stabilised aftermarket growth, increased capital deployment, and margin expansion.
The company has also made notable strategic acquisitions over the past year, which are likely to add significant future revenue and further solidify TransDigm Group Incorporated (NYSE:TDG)’s position in the aerospace and defense markets. In June, it acquired Communications & Power Industries’ Electron Device business for $1.385 billion. Later, in July, it completed the $655 million acquisition of Raptor Scientific.
According to Insider Monkey’s database for Q4 2024, 9 billionaires have investments in TransDigm Group Incorporated (NYSE:TDG), with combined holdings of over $465 million, making it one of the best defense stocks to buy according to billionaires.
12. Curtiss-Wright Corporation (NYSE:CW)
Number of Billionaires: 11
Billionaire Holdings: $271,850,814
Curtiss-Wright Corporation (NYSE:CW) provides engineered products, solutions and services for the aerospace and defense markets. It operates through three segments: Aerospace & Industrial, Defense Electronics, and Naval & Power. On January 21, the company was awarded a $27 million contract by the Canadian Commercial Corporation (CCC) to supply Aircraft Ship Integrated Securing and Traversing (ASIST) systems and support for the US Navy’s constellation class frigates. It is part of a five-year IDIQ contract, valued at potentially $100 million.
Earlier in the year, Curtiss-Wright Corporation (NYSE:CW) completed the $200 million acquisition of Ultra Nuclear Limited and Weed Instrument Co., Inc., a manufacturer of reactor protection systems, radiation and neutron monitoring systems, and temperature and pressure sensors to ensure the safe operation of nuclear reactors and other power generation plants.
During its Q4 2024 earnings call on February 12, Curtiss-Wright Corporation (NYSE:CW) reported sales of $3.1 billion for the full year, up 10% from last year. Operating income stood at $529 million, with an operating margin of 16.9%. Adjusted diluted EPS was logged at $10.90, increasing 16% compared to the prior year. Adjusted free cash flow reached a record $483 million during the year. The company is heading into fiscal 2025 with an impressive order backlog of $3.4 billion.
Wall Street analysts are bullish on Curtiss-Wright Corporation (NYSE:CW) with a consensus Buy rating for the stock and an average share price upside potential of 20%. With 11 billionaires holding a stake in the company, it is among the best defense stocks to buy now.
11. L3Harris Technologies, Inc. (NYSE:LHX)
Number of Billionaires: 11
Billionaire Holdings: $319,024,019
L3Harris Technologies, Inc. (NYSE:LHX) is known for its wireless and night vision equipment, command and control systems, avionics, and terrestrial and spaceborne antennas. It was formed in 2019 after Harris Corporation and L3 Technologies merged.
On February 28, the company’s board of directors approved an increase in quarterly cash dividend from $1.16 to $1.20 per share. This is the 24th successive annual dividend raise, reflecting L3Harris Technologies, Inc. (NYSE:LHX)’s commitment to strong shareholder returns.
Recent contract awards have also enhanced the stock’s appeal among investors. On January 21, L3Harris Technologies, Inc. (NYSE:LHX) clinched a $263 million deal from the US Army for additional production of Enhanced Night Vision Goggle–Binocular (ENVG-B) systems, which will boost the capabilities of American troops to identify and engage enemy targets in low-light conditions.
Later in the month, the Army awarded L3Harris Technologies, Inc. (NYSE:LHX) another $300 million contract for the production of military communication radios, as part of continued proliferation of resilient communication solutions for American soldiers serving the nation in complex operational environments.
L3Harris Technologies, Inc. (NYSE:LHX)’s financial performance remains robust. During its Q4 2024 earnings call, the company reported non-GAAP diluted earnings per share of $3.47, beating expectations. This was driven by robust demand across the business coupled with operational efficiencies. Revenue for fiscal 2024 stood at $21.3 billion, growing 10% from last year.
Wall Street analysts have a consensus Buy rating for L3Harris Technologies, Inc. (NYSE:LHX), with an average share price upside potential of 25%. According to Insider Monkey’s database for Q4 2024, 11 billionaires have investments in the company, making it one of the best defense stocks to buy according to billionaires.
10. General Dynamics Corporation (NYSE:GD)
Number of Billionaires: 11
Billionaire Holdings: $602,368,559
General Dynamics Corporation (NYSE:GD) is a leading global aerospace and defense company, operating through its Aerospace, Marine Systems, Combat Systems, and Technologies segments. It is among the best defense stocks to buy according to billionaires.
On January 29, the company announced strong results for the fourth quarter of fiscal 2024, with revenue and earnings growth across segments. It reported a revenue of $13.3 billion, representing a 14.3% increase from last year. Net income stood at $1.1 billion, up 14.2% year-over-year. Diluted EPS was logged at $4.15, growing 14% from the prior year’s quarter.
The turbulent situation in Ukraine and the Middle East fueled demand for weapons during the quarter, as several countries increased military expenditure to secure their borders. General Dynamics Corporation (NYSE:GD)’s three defense segments – Marine Systems, Combat Systems, and Technologies recorded revenue growth of 16.2%, 1.3%, and 2.8%, respectively.
General Dynamics Corporation (NYSE:GD) returned $3 billion to shareholders in fiscal 2024 through share repurchases and dividends. On March 5, the company declared a quarterly dividend of $1.50 per share to be paid to all shareholders on record on April 11. This is a 5.6% increase over last year’s dividend and marks the 28th successive annual dividend increase authorized by GD.
General Dynamics Corporation (NYSE:GD) is a popular stock among billionaires. According to Insider Monkey, 11 billionaires had investments in the company as of Q4 2024, with a combined stake value of over $602 million. It is one of the best defense stocks to buy, with a consensus Buy rating from Wall Street analysts.
9. Triumph Group, Inc. (NYSE:TGI)
Number of Billionaires: 12
Billionaire Holdings: $72,451,524
Triumph Group, Inc. (NYSE:TGI) is an American aerospace and defense company that designs, engineers, manufactures, repairs, and overhauls complex aerospace structures and systems for both the commercial and military markets.
The company’s shares have surged 36% year-to-date, with a major spike following the announcement on February 3 that Triumph Group, Inc. (NYSE:TGI) had signed an agreement to be acquired by affiliates of Berkshire Partners and Warburg Pincus for an enterprise value of $3 billion. It will become a privately held company following the completion of the acquisition.
Triumph Group, Inc. (NYSE:TGI)’s financial position remains impressive. During its recent Q3 FY25 earnings call, the company reported net sales of $315.6 million, up 11% from last year. Adjusted earnings per share came in at $0.27 and exceeded analyst expectations of $0.24. It had an adjusted EBITDAP margin of 18% and generated $32.3 million in free cash flow during the quarter.
On February 24, Triumph Group, Inc. (NYSE:TGI) expanded its role in the M777 Howitzer program by extending its agreement with BAE Systems and the US Army as a strategic supplier of critical components. Analysts expect the partnership to open more doors for future military projects, positioning TGI well for further growth over the long run.
According to Insider Monkey’s database for Q4 2024, 25 hedge funds held a stake in Triumph Group, Inc. (NYSE:TGI), up from 24 at the end of the third quarter. Moreover, 12 billionaires have holdings valued at over $72 million in the company.
8. BWX Technologies, Inc. (NYSE:BWXT)
Number of Billionaires: 12
Billionaire Holdings: $140,866,646
BWX Technologies, Inc. (NYSE:BWXT) is an aerospace and defense company focused on providing nuclear solutions for global security, environmental protection, clean energy, and space exploration. It operates 15 major operating sites in the US, UK, and Canada.
On February 19, the company announced that it was awarded contracts worth $2.1 billion to manufacture reactor components under the US Naval Nuclear Propulsion Program. The agreements will support the construction activities of the Ford-class aircraft carriers and the Columbia and Virginia class submarines.
In January, BWX Technologies, Inc. (NYSE:BWXT) secured contracts for two major nuclear energy projects valued at over C$1 billion. The company will manufacture 48 steam generators for the Pickering life extension program as part of the first contract. Under the second contract, it will build a reactor pressure vessel (RPV) for GE Hitachi Nuclear Energy’s BWRX-300 SMR.
On February 24, BWX Technologies, Inc. (NYSE:BWXT) announced better-than-anticipated results for the fourth quarter of fiscal 2024 and provided an upbeat forecast for 2025, which has led to a general bullish sentiment around the company. Wall Street analysts have a consensus Strong Buy rating for the stock and anticipate a 27% surge, on average, in its share price.
BWX Technologies, Inc. (NYSE:BWXT) is one of the best defense stocks to buy according to billionaires. According to Insider Monkey’s database for Q4 2024, 12 billionaires held a stake in the company.
7. Axon Enterprise, Inc. (NASDAQ:AXON)
Number of Billionaires: 13
Billionaire Holdings: $939,404,874
Axon Enterprise, Inc. (NASDAQ:AXON) manufactures weapons and technology for law enforcement agencies, military, and civilian use. The company integrates cloud software solutions and hardware devices to help enable modern policing, defense, and security. It has a diverse product catalog featuring conducted energy devices, cameras, and sensors, among others.
On February 25, the company reported higher-than-expected earnings for the fourth quarter of fiscal 2024. It generated a net income of $135.2 million, growing 137% from last year. Quarterly revenue surged 34% year-over-year to $575 million, marking the 12th consecutive quarter of 25%+ revenue growth.
Axon Enterprise, Inc. (NASDAQ:AXON)’s revenue for the full year grew 33% to $2.1 billion. This is nearly double the figure reported two years ago. The company is heading into 2025 with positive momentum and expects to deliver around 25% growth in annual and adjusted EBITDA margin, both, for the current fiscal year.
Following the results, several analysts reiterated their Buy and Strong Buy ratings for Axon Enterprise, Inc. (NASDAQ:AXON), while raising their price targets, which reflected the bullish sentiment around the company. The stock has an average share price upside potential of nearly 13%.
According to Insider Monkey’s database for Q4 2024, 13 billionaires held a stake in the company, with combined holdings of over $939 million. Axon Enterprise, Inc. (NASDAQ:AXON) is one of the best defense stocks to buy right now.
6. Lockheed Martin Corporation (NYSE:LMT)
Number of Billionaires: 13
Billionaire Holdings: $1,297,066,521
Lockheed Martin Corporation (NYSE:LMT) is one of the largest defense contractors in the world. The company specializes in the research, design, and development of advanced technology systems, products, and services. It is among the best defense stocks to buy according to billionaires.
The company has struggled over the last few months, with its share price taking a hit after the Q4 2024 earnings call on January 28. Lockheed Martin Corporation (NYSE:LMT) reported net sales of $18.6 billion for the quarter, down from $18.9 billion during the same period last year. Net income also slid 71% year-over-year, due to heavy losses associated with certain classified programs.
Lockheed Martin Corporation (NYSE:LMT) shared a cautious profit outlook for fiscal 2025, amid a delay in the rollout of upgrades for the F-35. The creation of DOGE has also generally soured investor sentiment in defense stocks.
While challenges remain, Lockheed Martin Corporation (NYSE:LMT) continues to be a partner of choice for most American allies. An increasing number of countries are looking to bolster their national defense, which is likely to help the stock recover once the current headwinds are over. Here is what Ariel Focus Fund stated regarding LMT in its Q4 2024 investor letter:
Shares of leading global defense contractor Lockheed Martin Corporation (NYSE:LMT) also traded lower returning some of its third quarter gains. Although earnings were solid, investor uncertainty tied to ongoing F-35 contract negotiations and software delays overshadowed the company’s robust order backlog and return of capital to shareholders via share repurchases and dividends. In our view, LMT continues to be well positioned in the defense sector.
According to a Reuters report on March 3, Lockheed Martin Corporation (NYSE:LMT) is planning to launch a new, low-cost cruise missile priced at $150,000 with a range of 800 kilometers, as the company works to counter Chinese ambitions in the Pacific by offering affordable weaponry.
5. HEICO Corporation (NYSE:HEI)
Number of Billionaires: 14
Billionaire Holdings: $630,393,914
HEICO Corporation (NYSE:HEI) is an aerospace and technology company that manufactures jet engines and aircraft parts. It operates in two segments: Flight Support Group and Electronic Technologies Group.
The company also supports the government through activities such as reverse engineering, manufacturing aircraft engines and parts, and repair and maintenance services. It is considered an important player in the space industry as well and is credited for its role in supplying critical mission components to support India’s Chandrayaan-3 spacecraft, which landed on the Moon in 2023.
On February 26, HEICO Corporation (NYSE:HEI) announced strong results for the first quarter of fiscal 2025. It reported an all-time record quarterly net income of $168 million, up 46% year-over-year. Net sales were also up 15% from last year, while EBITDA registered a 22% increase compared to the same period in 2024.
Laurans A. Mendelson, HEICO Corporation (NYSE:HEI)’s Chairman and CEO, credited the robust performance during the quarter to double-digit organic growth within both business segments. The Flight Support Group experienced increased demand across product lines, while the Electronic Technologies Group saw a surge in demand for its defense, space and aerospace products.
HEICO Corporation (NYSE:HEI)’s share price has returned gains of 11% year-to-date. Wall Street analysts are bullish on the stock with a consensus Buy rating. According to Insider Monkey’s database for Q4 2024, 14 billionaires held a stake in the company.
4. Howmet Aerospace Inc. (NYSE:HWM)
Number of Billionaires: 14
Billionaire Holdings: $862,559,575
Howmet Aerospace Inc. (NYSE:HWM) manufactures components for aircraft engines, fasteners, aluminum wheels for trucks, and titanium structures for aerospace and defense applications. It is among the best defense stocks to buy according to billionaires.
On February 13, the company declared results for the fourth quarter and full year 2024. It generated a revenue of $1.9 billion in Q4, representing a 9% increase from last year, driven by robust growth in the commercial aerospace business. 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, up 12% from last year. Net income grew from $765 million in 2023 to $1.2 billion during the year. GAAP EPS for the year was logged at $2.81, compared to $1.83 per share in the prior year.
During the fourth quarter, Howmet Aerospace Inc. (NYSE:HWM) repurchased $190 million of common stock and paid a quarterly dividend of $0.08 per share. In January, the company repurchased another $50 million of shares and increased its quarterly dividend by 25% to 10 cents per share, reflecting HWM’s commitment to shareholder returns.
After strong results in 2024, Howmet Aerospace Inc. (NYSE:HWM) has raised its guidance for fiscal 2025 and now expects revenue growth to be around 8% year-over-year, coupled with improved profitability and cash generation. The company is anticipating another strong year amid rising OEM production rates, continued demand for commercial aviation and engine spare parts, and growth in the defense aerospace aftermarkets.
Wall Street analysts are bullish on Howmet Aerospace Inc. (NYSE:HWM) with a consensus Buy rating and an average share price upside potential of 3.4%.
3. Northrop Grumman Corporation (NYSE:NOC)
Number of Billionaires: 14
Billionaire Holdings: $1,635,472,404
Northrop Grumman Corporation (NYSE:NOC) is one of the largest defense contractors in the world. The stock has made steady gains over the past week on the back of recent high-value contracts. It is one of the best defense stocks to buy now.
On February 14, Northrop Grumman Corporation (NYSE:NOC) announced receiving two contracts, both focused on Integrated Battle Command System (IBCS), with a total value of $1.4 billion, to modernize the air and missile defense capabilities of the United States and Poland.
Later in the month on February 20, the company signed a Memorandum of Understanding with Hanwha Systems to produce ALMDS hardware components for South Korea’s Mine Countermeasures Helicopter (KMCH) program.
Northrop Grumman Corporation (NYSE:NOC) is also a major player in the autonomous aerial systems sector. It is the maker of the MQ-4C Triton – one of the most advanced maritime ISR UAVs deployed today. It is reported that the company recently completed testing of the third MQ-4C Triton ordered by Australia, with delivery set to take place later this year.
Northrop Grumman Corporation (NYSE:NOC)’s financial performance remains robust. Sales climbed 4% in fiscal 2024 to reach $41 billion, driven by continued demand for weapons. Net awards for the year totaled $50.6 billion, enabling the company to end the year with a record backlog of $91.5 billion.
Wall Street analysts are bullish on the stock, with a consensus Buy rating and an average share price upside potential of 14%. According to Insider Monkey’s database for Q4 2024, 14 billionaires held a stake in the company.
2. RTX Corporation (NYSE:RTX)
Number of Billionaires: 17
Billionaire Holdings: $3,137,353,172
RTX Corporation (NYSE:RTX) is a giant in the global aerospace and defense industry, providing systems and services to commercial, military, and government clients. The company operates through three main businesses: Collins Aerospace, Pratt & Whitney, and Raytheon.
According to Insider Monkey’s database for Q4 2024, 17 billionaires had investments in the company, with a combined stake value of more than $3.13 billion. Regular awards of high-value contracts have made it an attractive stock for investors.
Earlier this year, RTX Corporation (NYSE:RTX) clinched a $946 million deal to provide additional Patriot air and missile defense systems to Romania, inclusive of radars, missiles, and control stations. During the fourth quarter of 2024, the company was awarded two contracts from the US Navy valued at over $1.3 billion for the AIM-9X SIDEWINDER missiles and the Next Generation Jammer Mid-Band (NGJ-MB) system.
On February 28, RTX Corporation (NYSE:RTX) announced that its Collins Aerospace business had successfully tested a demonstrator of the Enhanced Power and Cooling System (EPACS), which will offer increased cooling to enhance capabilities of the F-35. The new technology is set to rival Honeywell as the supplier of a critical onboard system for the stealth fighter.
During its Q4 2024 earnings call on January 28, RTX Corporation (NYSE:RTX) reported stellar results for fiscal 2024, with adjusted sales of $80.8 billion, growing 9% year-over-year. Adjusted EPS was logged at $5.73, up 13% from last year. The company returned $3.7 billion of capital to shareholders during the year and is heading into fiscal 2025 with a backlog of $218 billion.
RTX Corporation (NYSE:RTX) is one of the best defense stocks to buy now, with Wall Street analysts having a consensus Buy rating for the stock with an average share price upside potential of 10%.
1. The Boeing Company (NYSE:BA)
Number of Billionaires: 17
Billionaire Holdings: $4,347,891,119
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.
2024 was a grim year for the company, which saw its share price slump by nearly 30%. The year was marred by a door blowout during a flight, a slowdown in the production of airplanes, and a seven-week workers strike. As a result, the company reported a full year loss of $11.8 billion.
The Boeing Company (NYSE:BA)’s challenges remain unabated, with a further 14% year-to-date dip in its share price in 2025. New tariffs imposed by the Trump administration have aggravated the situation for the company as it is likely to see rising costs and a disruption in its supply chain.
However, most analysts are still 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.
Wall Street analysts have a consensus Buy rating for the stock, with an impressive average share price upside potential of 32%. According to Insider Monkey’s database for Q4 2024, 17 billionaires held a stake in The Boeing Company (NYSE:BA) with combined holdings of over $4.34 billion.
Overall, The Boeing Company (NYSE:BA) ranks first among the 13 Best Defense Stocks to Buy According to Billionaires. 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 timeframe. 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.
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