8 Best Small Cap Defense Stocks to Buy Now

4. National Presto Industries, Inc. (NYSE:NPK)

Market Cap: $536 million

Number of Hedge Fund Holders: 16

National Presto Industries, Inc. (NYSE:NPK) is divided into three business segments – houseware appliances, defense, and safety. This provides the company with a significant edge; if one market is down, the other may go up. NPK was founded in 1905 and started off producing pressure canners for home use, before venturing into other cooking appliances and, later, defense and safety products.

Its defense segment is a major supplier of 40mm ammunition and cartridge cases to the United States Department of Defense (DoD). On May 14, National Presto Industries, Inc. (NYSE:NPK) was awarded a five-year contract worth $818.9 million by the U.S. Army for 40mm M918E2 High-Velocity Target Practice cartridges. Earlier in the month, the company also announced that Spectra Technologies, LLC, a wholly-owned subsidiary of National Defense Corporation (NPK’s defense holding company) received a follow-on subcontract valued at $48 million from Raytheon Missiles & Defense to produce warheads for the TOW 2B missile.

On October 25, National Presto Industries, Inc. (NYSE:NPK) announced financial results for the third quarter of 2024. Net sales were posted at $91.8 million, up 10.4% year-over-year, and were driven by an 8.9% increase in defense segment shipments from backlog and a 15.2% surge in home appliances revenue. Net income stood at $8.08 million, compared to $7.02 million during the same period last year. Net EPS was logged at $1.13, growing 14% from last year.

According to Insider Monkey’s database for Q3 2024, 16 hedge funds had investments in the company, making it one of the best small cap defense stocks to buy now.