10 Best Aerospace and Defense Stocks to Buy According to Hedge Funds

7. Howmet Aerospace Inc. (NYSE:HWM)

Number of Hedge Fund Holders: 75

Howmet Aerospace Inc. (NYSE:HWM) is among the 10 Best Aerospace and Defense Stocks to Buy According to Hedge Funds, with 75 hedge funds holding a stake in the company as of Q1 2026, up from 71 in the prior quarter.

Wall Street has a bullish outlook on the stock, with a Strong Buy rating based on recommendations from 14 analysts and an average share price upside potential of 19% as of the close on June 5.

Recent updates include Bank of America’s Ronald Epstein, who on May 26 reiterated a Buy rating on the company’s shares, according to a report on TipRanks.

Earlier on May 18, Citi analyst John Godyn hiked the price target on Howmet Aerospace Inc. (NYSE:HWM) to $303 from $271 and maintained a Buy rating. The adjustment came after the firm updated models in the aerospace and defense sector.

The analyst said he does not anticipate an ‘immediate V-shaped rally’ until hostilities in the Middle East cease, but added that the recent sell-offs present investors with a buying opportunity. Godyn expects aerospace stocks to gain first, with defense companies following.

In other news, the aircraft parts maker has made a strong start to 2026, with first-quarter revenue, adjusted EBITDA, adjusted EBITDA margin, and adjusted EPS surpassing the high end of the guidance.

The company also comfortably beat Wall Street’s revenue and profit expectations and lifted its full-year guidance on the back of robust growth in its aerospace and gas turbine businesses.

Howmet Aerospace Inc. (NYSE:HWM) 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.