Goldman Sachs Defense Stocks: Top 12 Stock Picks

10. Howmet Aerospace Inc. (NYSE:HWM)

Stake Value as of Q4 2024: $144,773,105

Howmet Aerospace Inc. (NYSE:HWM) is one of the top defense picks from the Goldman Sachs stock portfolio. The company manufactures components for aircraft engines, fasteners, aluminum wheels for trucks, and titanium structures for aerospace and defense applications.

The stock has gained 94% over the past year, with year-to-date returns of nearly 13% as of the close of business on April 18. Howmet Aerospace Inc. (NYSE:HWM) has attracted significant investor interest due to its robust financial performance. In February, the company reported major year-over-year revenue and net income increases for the fourth quarter and full year 2024.

According to Insider Monkey’s database for Q4 2024, 58 hedge funds held a stake in the company, improving from 45 at the end of the third quarter. Hardman Johnston Global Equity Strategy stated the following regarding Howmet Aerospace Inc. (NYSE:HWM) in its Q4 2024 investor letter:

“From a sector standpoint, the main drivers of the portfolio’s outperformance during the fourth quarter were Industrials and Materials. Within Industrials, Howmet Aerospace Inc. (NYSE:HWM) and Vertiv Holdings Co. were the largest contributors to outperformance. Howmet reported an earnings beat during the quarter with broad-based strength spanning across all key segments. In particular, the company’s Engine Products and Fasteners segment performed well. During the earnings call, management spent significant time describing the emerging new growth driver of industrial gas turbines, which are used in gas power plants, which have become a focus for investors due to accelerating demand from AI data centers. Howmet is the leading supplier to the three major producers of these engines and will benefit from both initial purposes and the long-term maintenance demand.”

On April 9, Howmet Aerospace Inc. (NYSE:HWM)’s board of directors approved a dividend of 10 cents per share on the company’s common stock and 93.75 cents per share on the outstanding preferred stock, reiterating its commitment to shareholder returns.