10 Best Large Cap Defense Stocks to Buy According to Hedge Funds

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6. General Dynamics Corporation (NYSE:GD)

Number of Hedge Fund Holders: 66

General Dynamics Corporation (NYSE:GD) is among the 10 Best Large Cap Defense Stocks to Buy According to Hedge Funds. On April 30, Morgan Stanley analyst Kristine Liwag lifted the price target on the stock to $435 from $410 and reiterated an Overweight rating.

The adjustment came after the company reported results for the first quarter of 2026. The analysts described the financial performance as ‘standout’ compared with other major competitors, according to a report on TipRanks. Morgan Stanley further added that the demand for the Gulfstream remained resilient despite the Middle East crisis, which led to customer hesitation.

On the same day, JPMorgan also raised its price target on General Dynamics Corporation (NYSE:GD) to $400 from $385 and maintained an Overweight rating.

The company beat Wall Street’s expectations for both revenue and profit in the first quarter, amid a strong show by its aerospace and marine segments. The defense contractor also lifted its profit guidance for the full year.

As of the close of business on May 5, the stock is a Moderate Buy based on 16 analysts’ recommendations and has an average share-price upside potential of 12%.

General Dynamics Corporation (NYSE:GD) is a leading global aerospace and defense company, operating through its Aerospace, Marine Systems, Combat Systems, and Technologies segments.

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