This article looks at the 10 Best Aerospace and Defense Stocks to Buy According to Billionaires.
The world has been marred with geopolitical conflicts since the turn of the decade. The ongoing tensions between Iran and the US-Israel have further aggravated the situation, with many experts describing the war as the worst humanitarian and energy crisis since the COVID-19 pandemic.
However, the turmoil has been a boon for defense stocks. The Gabelli Commercial Aerospace & Defense ETF (GCAD) has gained 7.51% year-to-date, as of the close on March 20, comfortably outpacing the broad market index, which is down 5.13% during the period. Over the past year, returns have compared 43% against 13%.
Earlier this month, Tony Bancroft, Portfolio Manager at Gabelli Funds, talked to CNBC and acknowledged that the Iran war is driving up shares of aerospace and defense companies, and said he expects industry production and spending to increase in the near future, given the volatile situation.
Media reports on Wednesday said that the Pentagon was preparing to seek an additional $200 billion from Congress to fund the war in Iran. During a press briefing, Pete Hegseth, the Secretary of Defense, said that the government might even require more since ‘it takes money to kill bad guys’.
The reported figures have also led to speculation on where the money would be spent. Capital Alpha Partners analyst Byron Callan was quoted as saying the following by Barron’s:
“Middle East War-related costs had been reported to total $50 billion. There are open questions about where the other $150 billion came from and what this all may mean for the fiscal year 2027 request.”
With that said, let’s now shift focus and see which are the best aerospace and defense stocks that billionaires are investing in.
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Methodology
For this article, we scanned Insider Monkey’s Q4 2025 proprietary database of billionaires’ stock holdings and identified aerospace and defense stocks from the list. From there, we picked the top 10 stocks with the highest number of billionaires having a stake in them. When two or more stocks were tied in billionaire sentiment, we used the dollar value of billionaire holdings as a tiebreaker. Additionally, we have included data on hedge fund holdings in these companies, sourced from Insider Monkey’s database as of Q4 2025, to provide further insight into investor interest.
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 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).
10 Best Aerospace and Defense Stocks to Buy According to Billionaires:
10. Rocket Lab Corporation (NASDAQ:RKLB)
Number of Billionaire Investors: 16
Rocket Lab Corporation (NASDAQ:RKLB) is among the 10 Best Aerospace and Defense Stocks to Buy According to Billionaires. On March 19, Clear Street initiated coverage of the stock with a Buy rating and announced a share price target of $88.
According to a report on TipRanks, the firm’s analyst Greg Pandy highlighted Neutron, the company’s leadership in small-lift orbital launch, and its Space Systems as major drivers of revenue growth for the company and in reinforcing its status as a ‘leading integrated space operator’.
This follows Deutsche Bank’s adjustment earlier in the month on March 2, when analyst Edison Yu raised the price target on Rocket Lab Corporation to $73 from $55 and maintained a Buy rating. As of the close of business on March 20, the stock is a Moderate Buy with an average upside of 33%.
In other news, on Wednesday, the company announced it had secured a $190 million contract for 20 hypersonic test flights with its HASTE launch vehicle under the U.S. Department of War’s MACH-TB 2.0 program. This is the largest launch contract in the space firm’s history, taking its backlog for launch and space systems to over $2 billion.
Rocket Lab Corporation is a global leader in launch services and space systems with an established record of delivery success. The company designs and manufactures spacecraft and related components, rockets, and on-orbit management solutions required for the space economy.
9. Archer Aviation Inc. (NYSE:ACHR)
Number of Billionaire Investors: 18
Archer Aviation Inc. (NYSE:ACHR) is among the 10 Best Aerospace and Defense Stocks to Buy According to Billionaires. As of the close on March 20, the stock is a Strong Buy based on the recommendations of six analysts, with an average upside potential of 129%.
According to TipRanks, Canaccord Genuity analyst Austin Moeller on March 12 reiterated the firm’s Buy rating with a share price target of $13. This followed Needham’s revision on March 3, following the company’s Q4 2025 results, when it lowered the price target to $9 from $10, and maintained a Buy rating.
In a research note to investors, Needham said there were several bullish scenarios for Archer Aviation Inc. in 2026, with the company now flying the new version of the Midnight aircraft and its participation in eVTOL Integration Pilot Program (eIPP) being the key catalysts to drive growth.
In related news, on March 9, Archer Aviation Inc. announced that the U.S. government had taken a major step towards introducing electric air taxis in the country with the selection of partners in Florida, New York, and Texas to participate in the eIPP. The company said it will work on these locations to prepare for Midnight aircraft flights under the program.
Archer Aviation Inc. is an aerospace company engaged in the development of innovative technologies to power the future of aviation in both the commercial and defense space. It is actively involved in the development of electric vertical takeoff and landing aircraft for air taxi operations, and is aiming for passenger flights in the UAE and the US later this year.
8. L3Harris Technologies, Inc. (NYSE:LHX)
Number of Billionaire Investors: 18
L3Harris Technologies, Inc. (NYSE:LHX) is among the 10 Best Aerospace and Defense Stocks to Buy According to Billionaires. As of the close of business on March 20, the stock is a Strong Buy with an average share price upside potential of 12.40%.
Recent updates include a February 27 update from JP Morgan analyst Seth Seifman, who reiterated an Overweight rating on the stock with a price target of $410, according to a report on TipRanks.
This followed Baird’s adjustment a day earlier when the firm lifted its price target on L3Harris Technologies, Inc. to $420 from $385, while maintaining an Outperform rating. The firm said it had revised its stock model after the defense contractor shared 2028 targets during a recent investor day that exceeded Wall Street’s expectations.
The stock has already returned nearly 16% this year and is gaining traction among investors as the Middle East conflict intensifies, with experts widely noting the company’s missiles and missile protection systems playing a key role in the ongoing Iran-US-Israeli war.
L3Harris Technologies, Inc. provides advanced national security solutions in the air, land, space, sea, and cyber domains. It operates through four segments: Communication Systems, Integrated Mission Systems, Space & Airborne Systems, and Aerojet Rocketdyne.
7. Lockheed Martin Corporation (NYSE:LMT)
Number of Billionaire Investors: 19
Lockheed Martin Corporation (NYSE:LMT) is among the 10 Best Aerospace and Defense Stocks to Buy According to Billionaires. On March 18, Susquehanna analyst Charles Minervino lifted the price target on the stock to $740 from $725, while maintaining a Positive rating.
The firm said it had adjusted the defense contractor’s model, factoring in its industry positioning as global geopolitical conflicts intensify. Susquehanna remains optimistic about the company’s growth potential in the medium-term, given its strong backlog of orders and programs to enhance production capacity.
As of the close of business on March 20, Wall Street analysts have a Hold rating on Lockheed Martin Corporation, with an average share price upside potential of 7%.
In other news, the company recently marked a significant milestone in advancing the U.S. military’s capabilities to tackle moving maritime targets with the Precision Strike Missile (PrSM) Increment 2, achieving key test objectives on its first test flight. The missile was launched from a HIMARS and covered a distance of 350 kilometers.
Lockheed Martin Corporation is one of the world’s largest defense contractors. It specializes in the research, design, and development of advanced technology systems, products, and services. The company has produced several iconic military aircraft for the past several decades, including the world’s most dominant fifth-generation fighter jet, the F-35.
6. Northrop Grumman Corporation (NYSE:NOC)
Number of Billionaire Investors: 20
Northrop Grumman Corporation (NYSE:NOC) is among the 10 Best Aerospace and Defense Stocks to Buy According to Billionaires. According to TipRanks, BofA analyst Ronald Epstein maintained the firm’s Buy rating on the stock on March 17.
The update reiterates the bank’s earlier adjustment on January 28, following the company’s fourth-quarter earnings call. Then, BofA raised its price target to $750 from $685, with a Buy rating, while noting that NOC was embracing opportunities to become more commercial and agile without losing its status as a leading defense contractor.
As of the close of business on March 20, Northrop Grumman Corporation is a Moderate Buy, with an average share price upside potential of 6%.
On Thursday, the company announced that Talon IQ, its autonomous testbed ecosystem, had successfully performed its first flight with Shield AI’s Hivemind software, marking a significant milestone in mission autonomy, which is seen as an acceleration towards combat capabilities driven by artificial intelligence.
Northrop Grumman Corporation is one of the world’s largest defense contractors. It is engaged in the design, development, integration, and maintenance of advanced systems across aeronautics, space, defense electronics, and mission solutions.
5. General Dynamics Corporation (NYSE:GD)
Number of Billionaire Investors: 20
General Dynamics Corporation (NYSE:GD) is among the 10 Best Aerospace and Defense Stocks to Buy According to Billionaires. On March 18, the Department of War announced that the company was awarded a $15.38 billion Navy contract modification involving the Columbia-class submarines.
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According to the press release, the defense contractor’s subsidiary, General Dynamics Electric Boat Corp., will support the program through the provision of services like submarine design, sustainment, lead yard services, supplier development efforts, and enterprise planning initiatives.
The contract has been offered by the Naval Sea Systems Command and is scheduled for completion by June 2035.
In other news, General Dynamics Corporation on March 9 said that its Board of Directors had approved a regular quarterly dividend of $1.59 per share on common stock. It is payable on May 8 to all shareholders on record as of the close on April 10.
The announcement marks a 9-cent sequential increase in payout. The company is considered among the leading dividend-paying stocks in the sector due to its consistent dividend growth over the decades. It has an annual dividend yield of 1.84% as of March 20.
General Dynamics Corporation is a leading global aerospace and defense company, operating through its Aerospace, Marine Systems, Combat Systems, and Technologies segments. It offers a broad portfolio of products and services related to ship construction, advanced weapon systems, land combat vehicles, business aviation, and more.
4. RTX Corporation (NYSE:RTX)
Number of Billionaire Investors: 23
RTX Corporation (NYSE:RTX) is among the 10 Best Aerospace and Defense Stocks to Buy According to Billionaires. On March 10, the company announced that its Pratt & Whitney business had secured a follow-on contract to provide TJ150 engines for Leidos’ AGM-190A small cruise missiles.
The turbojet engine is used in several missile programs worldwide, with more than 2,700 engines delivered to customers. The TJ150 offers more than 150 pounds of thrust, enabling it to travel at high altitudes and power several autonomous systems and weapons. It is also manufactured in a short duration of time compared to other engines.
In other news, RTX Corporation continues to remain on analysts’ radar and currently sports a Strong Buy rating. As of the close of business on March 20, the stock has an average share price upside potential of 15%.
Recent updates include Bernstein analyst Adrien Rabier, on March 9, maintaining a Market Perform rating on the stock, according to TipRanks. This is a reaffirmation of the firm’s earlier update on January 29, when it also lifted the price target to $204 from $189, following the company’s strong performance during the fourth quarter of fiscal 2025.
RTX Corporation is a giant in the global aerospace and defense industry, providing systems and services to commercial, military, and government clients. It operates through three main businesses: Collins Aerospace, Pratt & Whitney, and Raytheon.
3. Howmet Aerospace Inc. (NYSE:HWM)
Number of Billionaire Investors: 24
Howmet Aerospace Inc. (NYSE:HWM) is among the 10 Best Aerospace and Defense Stocks to Buy According to Billionaires. On March 17, BTIG maintained its Buy rating on the stock, with a share price target of $275.
This is a reaffirmation of the firm’s earlier update on February 18, when it lifted the price target to $275 from $240 and kept a Buy rating following the company’s earnings beat in the fourth quarter of 2025. BTIG noted that capital expenditure had reached record levels, and added that it expects the trend to continue, driven by increasing orders.
As of the close of business on March 20, the stock is a Strong Buy with an average share price upside potential of 22%.
In other news, Reuters reported on Tuesday that Howmet Aerospace Inc. was coping with a situation of soaring defense demand due to geopolitical tensions and a booming commercial aerospace sector.
While talking at the Bank of America Global Industrials Conference in London, CEO John Plant said that while the company can meet targets to increase narrowbody production, it would be a challenge to address demand immediately if the output of large long-haul jets is ramped up.
Howmet Aerospace Inc. provides advanced engineered solutions for the aerospace and transportation industries. The company’s primary business focus is on providing components for aircraft engines, airframe structures, and fastening systems. The stock was recently listed among the 10 Best Aerospace Dividend Stocks to Buy.
2. GE Aerospace (NYSE:GE)
Number of Billionaire Investors: 27
GE Aerospace (NYSE:GE) is among the 10 Best Aerospace and Defense Stocks to Buy According to Billionaires. On March 18, the company announced that it plans to invest over €110 million and hire more than 1,000 new workers across its manufacturing facilities in Europe to boost production capacity and fast-track advanced manufacturing.
A major chunk of the investment will be focused on modern engine test cells, the latest equipment, additive manufacturing expansion, and upgrades to existing infrastructure, which will help support engine programs for both commercial aircraft and military fighter jets and helicopters.
According to the press release, about 70% of the amount will be spent on facilities in Italy, with the rest going to Poland, the Czech Republic, the United Kingdom, and Romania.
Additionally, GE Aerospace intends to spend around €40 million on Europe’s MRO and component repair facilities this year, as part of a $1 billion investment initiative announced in 2024.
In other news, the stock remains on analysts’ radar and currently carries a Strong Buy rating, with an average share price upside of 30% as of the close on March 20. Recent updates include Bernstein lifting its price target to $405 from $374 on March 3, while reiterating an Outperform rating on the shares.
GE Aerospace is a global aerospace propulsion, services, and systems company with an installed base of around 30,000 military and 50,000 commercial aircraft engines. It operates through two segments: Commercial Engines & Services (CES) and Defense & Propulsion Technologies (DPT).
1. The Boeing Company (NYSE:BA)
Number of Billionaire Investors: 32
The Boeing Company (NYSE:BA) is among the 10 Best Aerospace and Defense Stocks to Buy According to Billionaires. On March 19, Tigress Financial analyst Ivan Feinseth lifted the firm’s price target on the stock to $290 from $275 and maintained a Buy rating.
In a research note to investors, Ivan noted that commercial air traffic has been on the rise for the last several decades. Moreover, the company has a record backlog of orders across commercial aerospace, defense, and space, coupled with lucrative aftermarket offerings, setting it up well to benefit.
According to TipRanks, Tigress also highlighted The Boeing Company’s fourth quarter results, which it believes strengthen the general bullish outlook for the stock as figures suggested an inflection in scale, earnings, cash flow, and demand visibility.
In other news, Jefferies on Wednesday maintained a Buy rating on the aerospace company with a price target of $295, a reiteration of its previous adjustment in early February when it lifted the price target from $290 following the Q4 earnings report.
As of the close of business on March 20, the stock is a Strong Buy with a one-year average share price target of $278.50, representing an upside potential of approximately 43%.
The Boeing Company is a leading aerospace company that manufactures commercial airplanes, space systems, and defense equipment for customers in more than 150 countries.
