Investing in defense stocks can be a strategic move, especially given the sector’s resilience and the essential role it plays in national security. If you’re considering adding defense stocks to your portfolio, it’s important to know which companies are leading the industry. Let’s explore some of the top defense stocks that have been identified by analysts and industry experts.
Lockheed Martin Corporation (LMT)
Lockheed Martin stands as one of the world’s largest defense contractors, renowned for its advanced technologies in aerospace, defense, and security systems. The company’s flagship projects include the F-35 Lightning II fighter jet and various missile defense systems. With a market capitalization exceeding $120 billion and revenues of approximately $66 billion in 2024, Lockheed Martin offers investors a blend of stability and growth potential.
Raytheon Technologies Corporation (RTX)
Raytheon Technologies specializes in aerospace and defense systems, including missile technologies, radars, and avionics. The company’s diverse portfolio and strong presence in both defense and commercial aviation make it a balanced investment choice. With a market cap around $130 billion and revenues over $70 billion in 2024, Raytheon’s consistent performance and innovative projects position it well for future growth.
Northrop Grumman Corporation (NOC)
Northrop Grumman focuses on advanced aerospace systems, autonomous technology, and cyber solutions. The company’s involvement in developing the B-21 Raider bomber and its leadership in unmanned systems and space technology offer significant growth potential. With a market cap around $80 billion and revenues of $39 billion in 2024, Northrop Grumman remains a key player in the defense sector.
General Dynamics Corporation (GD)
General Dynamics is known for its Gulfstream jets and combat vehicles like the M1 Abrams tank. The company’s broad portfolio and strong government ties provide a stable investment option for defense-focused investors. With a market cap of approximately $70 billion and revenues over $40 billion in 2024, General Dynamics continues to secure significant government contracts.
L3Harris Technologies (LHX)
L3Harris specializes in communication systems, electronic warfare, and intelligence, surveillance, and reconnaissance (ISR) technologies. The company’s innovative technologies and increasing demand for ISR solutions make it a promising player in the defense industry. With a market cap of $40 billion and revenues of $17 billion in 2024, L3Harris is well-positioned for future growth.
Huntington Ingalls Industries (HII)
Huntington Ingalls is the largest military shipbuilding company in the USA, known for designing aircraft carriers and submarines. The company’s dominance in shipbuilding ensures a steady stream of government contracts. With a market cap of $10 billion and revenues of $9 billion in 2024, Huntington Ingalls remains a crucial component of the U.S. defense infrastructure.
Textron Inc. (TXT)
Textron produces Bell helicopters, military aircraft, and armored vehicles. The company’s focus on advanced mobility solutions positions it well for future military contracts. With a market cap of $16 billion and revenues of $14 billion in 2024, Textron offers a diversified investment opportunity within the defense sector.
AeroVironment Inc. (AVAV)
AeroVironment is a leader in unmanned aerial systems (UAS) for military and commercial applications. The company’s focus on lightweight, portable drones positions it for growth in modern warfare. With a market cap of $3 billion and revenues of $500 million in 2024, AeroVironment represents a high-risk, high-reward option for investors seeking exposure to innovative defense technologies.
Recent market trends
According to a recent article in Barron’s, defense stocks have experienced a slump, but analysts at Citi suggest this presents a buying opportunity. Companies like Lockheed Martin, Northrop Grumman, General Dynamics, and L3Harris Technologies have seen declines of around 15% since November 2024. Citi analyst Jason Gruski maintains that the market valuations are too conservative and that it cannot think of a better time to invest in defense stocks.
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