Goldman Sachs Defense Stocks: Top 12 Stock Picks

1. GE Aerospace (NYSE:GE)

Stake Value as of Q4 2024: $878,138,079

GE Aerospace (NYSE:GE) is a global aerospace propulsion, services, and systems company with an installed base of around 25,000 military and 45,000 commercial aircraft engines.

The company’s share price has plunged by 12% over the past month, with analysts lowering their price targets for the stock due to concerns around potential tariff impacts. At the same time, GE Aerospace (NYSE:GE) has been in the news recently for notable defense contract awards.

On March 31, the company received a subcontract to build avionics systems for the Army’s Future Long Range Assault Aircraft (FLRAA) program, working as part of a team led by Bell Textron Inc. Earlier during the month, GE Aerospace (NYSE:GE) received a $5 billion IDIQ contract from the US Air Force to support Foreign Military Sales (FMS) for the F110-GE-129 engines.

GE Aerospace (NYSE:GE) has also made headlines this year for its ambitious investment plans. The company has announced to spend up to $1 billion in its US facilities in 2025 to strengthen manufacturing and innovation. It will also invest over €78 million in its European manufacturing sites in 2025.

Wall Street analysts are bullish on GE Aerospace (NYSE:GE) with a consensus Strong Buy rating and an average share price upside potential of over 20%. With holdings of over $878 million, it is the top defense pick from the Goldman Sachs stock portfolio.

Overall, GE ranks first among the Goldman Sachs Defense Stocks: Top 12 Stock Picks. While we acknowledge the potential of defense companies, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than GE but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.