5 Best Small Cap Defense Stocks to Buy Now

2. AAR Corp. (NYSE:AIR)

Market Cap as of April 27: $1.81 Billion

Number of Hedge Fund Holders: 20

AAR Corp. (NYSE:AIR) provides various parts and services to commercial aviation, government, and defense customers across the globe. As of April 27, the stock has a market cap of $1.81 billion and has gone up by 16.21% over the past 6 months. AAR Corp. (NYSE:AIR) is placed second on our list of the best small-cap defense stocks to buy now.

On March 22, Truist raised its price target on AAR Corp. (NYSE:AIR) to $60 from $57 and maintained a Buy rating on the shares.

AAR Corp. (NYSE:AIR) was a part of 20 hedge funds’ portfolios at the close of the fourth quarter of 2022. These funds held positions worth $125.7 million in the company. As of December 31, Rubric Capital Management is the top stockholder in the company and has a position worth $65.7 million.