5 Best Defense Stocks To Buy Now

1. TransDigm Group Incorporated (NYSE:TDG)

Number of Hedge Fund Holders: 71

On February 7, TransDigm Group Incorporated (NYSE:TDG) announced strong earnings for the first quarter of fiscal 2023. The company reported an EPS of $4.58 and outperformed EPS estimates by $0.28. The company generated a revenue of $1.40 billion, up 17% year over year and ahead of Wall Street consensus by $19.04 million. As of March 21, TransDigm Group Incorporated (NYSE:TDG) has returned 29.16% to investors over the past 6 months.

On February 28, BofA analyst Ronald Epstein raised his price target on TransDigm Group Incorporated (NYSE:TDG) to $890 from $770 and maintained a Buy rating on the shares. TransDigm Group Incorporated (NYSE:TDG) tops our list of the best defense stocks to buy now according to analysts and hedge funds.

At the close of the fourth quarter of 2022, 71 hedge funds were bullish on TransDigm Group Incorporated (NYSE:TDG) and disclosed stakes worth $5.93 billion in the company. This is compared to 63 hedge funds in the previous quarter with stakes worth $4.95 billion. The hedge fund sentiment for the stock is positive.

As of December 31, Stockbridge Partners is the top stockholder in TransDigm Group Incorporated (NYSE:TDG) and has disclosed a position worth $1 billion.

Here is what Vulcan Value Partners had to say about TransDigm Group Incorporated (NYSE:TDG) in its Q4 2022 investor letter:

“TransDigm Group Incorporated (NYSE:TDG) is an aerospace company making original equipment manufacturer and aftermarket parts for commercial and military aircraft. Approximately 90% of its net sales are from proprietary parts. TransDigm is the sole source provider for parts representing approximately 80% of its revenues. The company grew its EBITDA just over 20% in fiscal 2022 as air travel recovered from the COVID-19 downturn. We believe that the company will have another strong year in fiscal 2023.”

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