10 Best Defense Stocks to Buy in the S&P 500

7. L3Harris Technologies, Inc. (NYSE:LHX)

Number of Hedge Fund Holders: 59

L3Harris Technologies, Inc. (NYSE:LHX) is among the 10 Best Defense Stocks to Buy in the S&P 500. On January 15, UBS lifted its price target on the stock to $349 from $323, while keeping a Neutral rating.

The adjustment follows RBC Capital’s update a day earlier when the firm hiked its price target to $360 from $315 and reiterated a Sector Perform rating on the stock. The analyst noted the company’s recent partnership with the Department of War (DoW), which will see a $1 billion convertible preferred security investment in its rocket motor business.

RBC said the move was in line with the DoW’s ‘Arsenal of Freedom’. The partnership will ensure a stable supply of motors needed in missile programs and marks one in a series of investments made by the U.S. government in corporate companies under President Trump’s second term.

L3Harris Technologies, Inc. (NYSE:LHX) is planning to have the IPO for its Missile Solutions business during the latter half of 2026, after which the $1 billion security will convert to common equity upon becoming a new public company.

In other news, on January 14, the company said it was selected by the U.S. Navy and Marines under a multi-year contract to deliver 34 T7 Robots to strengthen explosive ordnance disposal capabilities. According to the press release, deliveries are scheduled to begin this year.

Wall Street has a bullish outlook on the stock with a consensus Strong Buy rating and a one-year average share price target of $361, representing an upside potential of 4.20% as of the close on January 19.

L3Harris Technologies, Inc. (NYSE:LHX) provides end-to-end technology solutions connecting the air, land, space, sea, and cyber domains in national security.