5 Defense Stocks to Buy As Geopolitical Tensions Rise

1. Honeywell International Inc. (NASDAQ:HON)

Number of Hedge Fund Holders: 51     

Honeywell International Inc. (NASDAQ:HON) is a diversified technology and manufacturing firm. It is one of the favorite defense stocks in the hedge fund universe. Among the hedge funds being tracked by Insider Monkey, New York-based investment firm DE Shaw is a leading shareholder in Honeywell International Inc. (NASDAQ:HON) with 1.6 million shares worth more than $342 million. 

On March 4, Deutsche Bank analyst Nicole DeBlase raised the price target on Honeywell International Inc. (NASDAQ:HON) stock to $243 from $237 and kept a Buy rating on the shares, appreciating the 2022 buyback plan and improved long-term targets of the company. 

In its Q1 2021 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and Honeywell International Inc. (NASDAQ:HON) was one of them. Here is what the fund said:

“The portfolio’s quality bias and valuation discipline have generated compelling returns over time with typically strong relative results in more challenging environments as it did through the first three quarters of 2020. However, that same quality bias tends to create a more challenging relative performance environment for the Strategy during periods of sharp economic acceleration, which tend to benefit stocks that are more commodity linked or of lower quality. This has been the case during the vaccine- and stimulus-driven rally experienced late last year and during the most recent quarter. Sectors that lagged in the quarter included industrials, Honeywell also lagged in the quarter after previously generating strong returns over extended periods.”

You can also take a peek at 10 Green Energy Stocks to Watch As Europe Cuts Reliance on Russia and 12 Best Artificial Intelligence Stocks To Invest In Right Now.

Follow Insider Monkey on Twitter