Goldman Sachs Defense Stocks: Top 12 Stock Picks

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5. Northrop Grumman Corporation (NYSE:NOC)

Stake Value as of Q4 2024: $342,671,759

Northrop Grumman Corporation (NYSE:NOC) is one of the largest defense contractors in the world. The company is manufacturing the B-21 Raider for the US Air Force (USAF).

It is one of the top defense picks from the Goldman Sachs stock portfolio. As of December 31, the investing banking firm held positions valued at nearly $343 million in the company. On April 11, GS upgraded Northrop Grumman Corporation (NYSE:NOC) from Sell to Neutral. It also raised the stock’s price target from $424 per share to $521. The analyst cited NOC’s long-term growth potential through projects like the B-21 and Sentinel as reasons behind the adjustment.

Investor sentiment in Northrop Grumman Corporation (NYSE:NOC) remains strong. According to Insider Monkey’s database for Q4 2024, 54 hedge funds held a stake in the company, up from 48 at the end of the third quarter. The confidence is expected to continue amid chatter about countries moving to buy American planes and military hardware to address trade imbalances with the US.

Recent contract awards are also adding to the momentum. In April, the Royal Australian Air Force selected Northrop Grumman Corporation (NYSE:NOC) to equip its C-130J fleet with the AN/ALQ-251 advanced radio frequency countermeasures system. The company was also awarded two national security contracts by the United States Space Force (USSF) for in-space refueling.

Wall Street analysts have a consensus Buy rating for Northrop Grumman Corporation (NYSE:NOC) with an average share price upside potential of 4.40%.

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