Goldman Sachs Defense Stocks: Top 12 Stock Picks

6. General Dynamics Corporation (NYSE:GD)

Stake Value as of Q4 2024: $337,296,669

General Dynamics Corporation (NYSE:GD) is a leading global aerospace and defense company, operating through its Aerospace, Marine Systems, Combat Systems, and Technologies segments.

In March, the company was awarded a $1 billion contract modification from the Department of Defense, allowing its Electric Boat business unit to purchase long-lead-time materials for the Virginia-class submarines. It is the prime contractor and lead design yard for these submarines and constructs them in a teaming arrangement with Huntington Ingalls Industries, Inc.’s Newport News Shipbuilding.

On April 16, General Dynamics Corporation (NYSE:GD)’s subsidiary, Gulfstream Aerospace Corp, announced that the G800 business jet had received FAA and EASA certifications, which will allow the company to begin customer deliveries of the jet in the United States and Europe.

Despite recent positive developments, several analysts have lowered their price targets for General Dynamics Corporation (NYSE:GD) due to concerns over potential tariff headwinds. However, the overall outlook for the company is encouraging, with analysts having a consensus Buy rating for the stock, with an average upside of nearly 10%.

It is also one of the top defense picks from the Goldman Sachs stock portfolio, with the firm’s holdings valued at over $337 million in General Dynamics Corporation (NYSE:GD) as of December 31. According to Insider Monkey’s database for Q4 2024, 46 hedge funds held a stake in the company.