We recently published a list of 13 Best Defense Stocks to Buy According to Billionaires. In this article, we are going to take a look at where Triumph Group, Inc. (NYSE:TGI) stands against other best defense stocks to buy according to billionaires.
Defense stocks wobbled over the past week after a contentious meeting at the Oval Office between President Trump and the visiting Ukrainian leader, Volodymyr Zelensky as investors hoped for the US-Ukraine minerals deal to be signed.
The sector has struggled since Trump’s return to the White House, amid mixed statements on military expenditure throughout his campaign and the early days of his second stint. Shares fell sharply on February 13 after the President hinted at cutting defense spending in the future. The creation of DOGE is also reshaping investors’ views of the industry.
READ ALSO: 10 Best Large Cap Defense Stocks to Buy Now and Why These 15 Defense Stocks Are Skyrocketing So Far In 2025.
In contrast, European defense stocks have rallied this year as governments faced pressures to increase military expenditure. Several stocks registered double-digit growth during the week of March 3, with some even reaching record highs. Investor sentiment picked up after the European Summit in London, where leaders from the EU and NATO met to express their support for Ukraine, following the recent Zelensky-Trump spat.
Washington has repeatedly called for European countries to spend more on defense, while stressing that the US could no longer foot the bill. EU leaders met in Brussels this Thursday to discuss the ‘ReArm Europe Plan’, which will allow the bloc to mobilize funds up to $860 million through bonds and relaxed rules on borrowing and spending.
European countries are also ramping up defense on an individual-level. A conservative victory in Germany, signaling the shift to the right in Berlin, is also adding to the momentum. According to a Reuters report, parties in talks to form the nation’s next government are already considering setting up a defense fund. Friedrich Merz, Germany’s next chancellor-in-waiting, has also vowed to relax the country’s strict borrowing rules.
Peter Schaffrik, Global Macro Strategist, at RBC Capital Markets stated the following on the ongoing situation:
It is an inflection point and Europe realises it needs to do the heavy lifting. The German elections have opened the door for more spending. The whole Zelensky-Trump meltdown has fast forwarded everything.
Methodology
For this article, we scanned Insider Monkey’s Q4 2024 proprietary database of billionaires’ stock holdings and identified defense stocks from the list. From there, we picked the top 13 stocks with the highest number of billionaires having a stake in them. Where two or more stocks were tied on billionaire sentiment, we used the dollar value of billionaire holdings as a tiebreaker between them.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
Aerial view of a modern commercial jetliner in flight, its wings reflecting the setting sun.
Triumph Group, Inc. (NYSE:TGI)
Number of Billionaires: 12
Billionaire Holdings: $72,451,524
Triumph Group, Inc. (NYSE:TGI) is an American aerospace and defense company that designs, engineers, manufactures, repairs, and overhauls complex aerospace structures and systems for both the commercial and military markets.
The company’s shares have surged 36% year-to-date, with a major spike following the announcement on February 3 that Triumph Group, Inc. (NYSE:TGI) had signed an agreement to be acquired by affiliates of Berkshire Partners and Warburg Pincus for an enterprise value of $3 billion. It will become a privately held company following the completion of the acquisition.
Triumph Group, Inc. (NYSE:TGI)’s financial position remains impressive. During its recent Q3 FY25 earnings call, the company reported net sales of $315.6 million, up 11% from last year. Adjusted earnings per share came in at $0.27 and exceeded analyst expectations of $0.24. It had an adjusted EBITDAP margin of 18% and generated $32.3 million in free cash flow during the quarter.
On February 24, Triumph Group, Inc. (NYSE:TGI) expanded its role in the M777 Howitzer program by extending its agreement with BAE Systems and the US Army as a strategic supplier of critical components. Analysts expect the partnership to open more doors for future military projects, positioning TGI well for further growth over the long run.
According to Insider Monkey’s database for Q4 2024, 25 hedge funds held a stake in Triumph Group, Inc. (NYSE:TGI), up from 24 at the end of the third quarter. Moreover, 12 billionaires have holdings valued at over $72 million in the company.
Overall, TGI ranks 9th on our list of best defense stocks to buy according to billionaires. While we acknowledge the potential of TGI as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than TGI but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires
Disclosure: None. This article is originally published at Insider Monkey.
