In this piece, we’ll take a look at the 5 Best Defense Stocks To Buy Heading Into 2023. For more such companies, go to 11 Best Defense Stocks To Buy Heading Into 2023.
5. Huntington Ingalls Industries, Inc. (NYSE:HII)
Number of Hedge Fund Holders: 24
Forward Annual Dividend Yield as of December 23: 2.15%
Huntington Ingalls Industries, Inc. (NYSE:HII) is a leading global provider of advanced technology and engineering services for the aerospace and defense markets. Huntington Ingalls Industries, Inc. (NYSE:HII) serves a wide range of customers, including the U.S. Department of Defense and other military and government organizations around the world. The company also serves commercial customers, including original equipment manufacturers. Huntington Ingalls Industries, Inc. (NYSE:HII) currently provides an annual dividend yield of 2.15%.
On December 8, 2022, David Strauss, an analyst at Barclays, put a price target of $270 on Huntington Ingalls Industries, Inc. (NYSE:HII) and upgraded the rating on the stock to Overweight from Equal Weight. The analyst is confident about the defense sector going into 2023 as the increasing modernization offsets the weak macro environment.
At the end of Q3 2022, 24 hedge funds in Insider Monkey’s database were long Huntington Ingalls Industries, Inc. (NYSE:HII). AQR Capital Management remained the leading stakeholder of the company at the end of Q3 2022.
4. L3Harris Technologies, Inc. (NYSE:LHX)
Number of Hedge Fund Holders: 39
Forward Annual Dividend Yield as of December 23: 2.18%
L3Harris Technologies, Inc. (NYSE:LHX) is a leading global technology company that provides a range of products and services for the aerospace, defense, and commercial markets. L3Harris Technologies, Inc. (NYSE:LHX) portfolio includes communications systems, electronic warfare systems, space systems, and cybersecurity solutions. The company also provides a range of services, including logistics, maintenance, and repair. The company currently offers a dividend yield of 2.18% to investors.
On December 15, 2022, Kristine Liwag, an analyst at Morgan Stanley, raised the price target on L3Harris Technologies, Inc. (NYSE:LHX) to $278 and upgraded his rating on the stock to Overweight. According to the analyst, 2023 should continue to be influenced by geopolitical tensions, with significant growth from higher defense budget commitments.
39 hedge funds were long on the company’s stock at the end of the third quarter, according to Insider Monkey’s database. Diamond Hill Capital had the biggest long position in the company at the end of Q3 2022.
3. Raytheon Technologies Corporation (NYSE:RTX)
Number of Hedge Fund Holders: 55
Forward Annual Dividend Yield as of December 23: 2.23%
Headquartered in Waltham, Massachusetts, Raytheon Technologies Corporation (NYSE:RTX) is a global aerospace and defense company that provides a range of products and services for military, government, and commercial customers. Raytheon Technologies Corporation (NYSE:RTX) serves a wide range of customers, including the U.S. Department of Defense and other military and government organizations around the world. The company also serves commercial customers, including airlines and original equipment manufacturers. Raytheon Technologies Corporation (NYSE:RTX) provides a dividend yield of 2.23% to investors currently.
On October 26, 2022, Peter Arment, an analyst at Baird, reduced his price target on Raytheon Technologies Corporation (NYSE:RTX) to $106 while keeping an Outperform rating on the stock. The analyst noted that supply chain challenges in the company’s defense operations masked the market’s ongoing rebound and solid third-quarter performance.
As per Insider Monkey’s database, 55 funds remained bullish on the company at the end of Q3 2022. Fisher Asset Management had the biggest long position on the company’s shares at the end of the third quarter.
Carillon Tower made the following comment about Raytheon Technologies Corporation (NYSE:RTX) in its Q3 2022 investor letter:
Raytheon Technologies Corporation (NYSE:RTX) announced strong results led by strength in its commercial segment, but weakness in its defense business led to investor consternation. Management guided to a recovery in this segment, citing both transitory supply chain issues and continued strong demand.
2. Lockheed Martin Corporation (NYSE:LMT)
Number of Hedge Fund Holders: 53
Forward Annual Dividend Yield as of December 23: 2.50%
Lockheed Martin Corporation (NYSE:LMT) is a leading global aerospace and defense company that provides a range of products and services for military, government, and commercial customers. Lockheed Martin Corporation (NYSE:LMT) product portfolio include aircraft, missiles, space systems, and cybersecurity solutions. The company also provides a range of services, including logistics, maintenance, and repair. The company currently offers a dividend yield of 2.50% to investors.
On December 8, 2022, Jason Gursky, an analyst at Citi, started covering Lockheed Martin Corporation (NYSE:LMT) with a price target of $546 and a Buy rating on the stock. The analyst is upbeat about the forecast for growth in defense spending over the coming years, as well as the diversification of Lockheed Martin Corporation (NYSE:LMT)’s capabilities across all domains.
According to Insider Monkey’s database, 53 hedge funds had stakes in Lockheed Martin Corporation (NYSE:LMT) at the end of the September quarter. GQG Partners remained the leading stakeholder of the company at the end of the third quarter.
1. Kaman Corporation (NYSE:KAMN)
Number of Hedge Fund Holders: 13
Forward Annual Dividend Yield as of December 23: 3.95%
Headquartered in Bloomfield, Connecticut, Kaman Corporation (NYSE:KAMN) is a global aerospace and industrial company that provides a range of products and services for military, government, and commercial customers. Kaman Corporation (NYSE:KAMN) serves a wide range of customers, including the U.S. Department of Defense and other military and government organizations around the world. The company also serves commercial customers, including original equipment manufacturers.
Kaman Corporation (NYSE:KAMN) provides a dividend yield of 3.95% to investors. On November 1, 2022, Kaman Corporation (NYSE:KAMN) reported its third-quarter results. The company’s revenue stood at $172 million, missing market expectations by $19 million.
As per Insider Monkey’s database, 13 hedge funds remained bullish on Kaman Corporation (NYSE:KAMN) at the end of Q3 2022. GAMCO Investors came out to be the biggest holder of the company’s shares at the end of the quarter.
You can also take a look at Agriculture Stocks List: 25 Biggest Companies and 10 Fastest Growing Car Companies in the World.
