Goldman Sachs Defense Stocks: Top 12 Stock Picks

4. The Boeing Company (NYSE:BA)

Stake Value as of Q4 2024: $496,973,724

The Boeing Company (NYSE:BA) is a leading aerospace company that manufactures commercial airplanes, space systems, and defense equipment for customers in over 150 countries. It is among the top defense picks from the Goldman Sachs stock portfolio, with the firm having holdings of nearly $497 million in the company.

On March 21, the US Air Force selected The Boeing Company (NYSE:BA) to design and build its next-generation fighter aircraft, the F-47, to replace the F-22 Raptor. The jet will have stealth and penetration capabilities that exceed those of the current fleet. The initial contract to proceed with the production is expected to cost approximately $20 billion.

The Boeing Company (NYSE:BA) recently shared a press release stating that the production of its Patriot Advanced Capability-3 (PAC-3) seekers reached an all-time high in 2024, with 500 deliveries during the year. The component enables advanced interceptors in the Patriot air defense system to identify and defeat threats like missiles and hostile aircraft. The 35,000-square-foot expansion of its Alabama factory in spring this year is expected to unlock further production capacity.

The company also received a $240 million contract late last month from the US Army Special Operations Aviation Command (USASOAC) to remanufacture five MH-47G Block II Chinook, with deliveries scheduled for 2027. This follows USASOAC’s 2024 award for four MH-47G Block II aircraft and has taken the total number of aircraft under the contract to 51. The Boeing Company (NYSE:BA) anticipates the entirety of the fleet to be delivered by 2030.

While financial challenges and recent tariffs continue to pressure the stock’s share price, most analysts remain bullish on The Boeing Company (NYSE:BA), considering its huge order backlog and believe the stock is bound to recover once the headwinds subside.