This article looks at the 10 Best Low Priced Defense Stocks to Buy Now.
While American defense stocks have had a quiet year so far, Wall Street analysts argue that the recent announcement by the U.S. and NATO to rearm Ukraine in its fight against Russia could turn things around.
Under the agreement, Washington will supply the weapons to be paid for by NATO allies. The U.S. has repeatedly urged Europe to raise its military expenditure while stressing that it could no longer foot the bill.
Last month, NATO leaders pledged to increase their defense spending to 5% of the GDP by 2035. This is a significant jump from the current target of 2% of GDP and is being seen as a major positive for the defense sector.
With that said, let’s now head over and discuss some of the best low-priced defense stocks to buy now.
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Our Methodology
We scanned through screeners to identify defense stocks with a share price of less than $10 as of the close of business on July 28. From there, we selected the top 10 stocks with the highest number of hedge fund investors having a stake in them, based on Insider Monkey’s database of 1,000 prominent hedge funds as of Q1 2025, and ranked them in ascending order. Where stocks were tied on hedge fund sentiment, we used their market caps as a tiebreaker.
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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
10 Best Low Priced Defense Stocks to Buy Now
10. Sidus Space, Inc. (NASDAQ:SIDU)
Share Price as of July 28: $1.17
Number of Hedge Fund Holders: 1
Sidus Space, Inc. (NASDAQ:SIDU) is among the 10 Best Low Priced Defense Stocks to Buy Now, based on hedge fund sentiment. On July 29, the company announced the closing of its public offering of 7,143,000 shares of its Class A common stock.
Each share was sold at a public offering price of $1.05 for gross proceeds of around $7.5 million, before deducting offering expenses and the placement agent’s fees. Sidus Space, Inc. (NASDAQ:SIDU) intends to use the net proceeds for operational costs, sales and marketing, product development, manufacturing expansion, working capital, and other corporate purposes.
CEO Carol Craig said the offering, coupled with the recent launch of dual-use Fortis VPX product line with integrated AI/ML processing, positions the company well to focus on growth opportunities ahead. Adarsh Parekh, the firm’s CFO, believes the additional capital will strengthen the company’s liquidity and aid in strategy execution and high-growth initiatives.
Sidus Space, Inc. (NASDAQ:SIDU) is engaged in the design, manufacture, launch, and data collection of satellites. It serves the aerospace, commercial space, and defense industries.
9. Momentus Inc. (NASDAQ:MNTS)
Share Price as of July 28: $1.17
Number of Hedge Fund Holders: 2
Momentus Inc. (NASDAQ:MNTS) is among the 10 Best Low Priced Defense Stocks to Buy Now based on hedge fund sentiment. The commercial space company offers satellite buses and in-space infrastructure services, including hosted payloads, in-space transportation, and other in-orbit services.
It is also working on several space-related defense contracts. Last month, the firm announced signing a $1.86 million SBIR contract with SpaceWERX, the innovation wing of the U.S. Space Force, to support an in-space flight demonstration of a low-cost multi-spectral sensor suite for Rendezvous and Proximity Operations (RPO). It is scheduled for early next year.
Earlier in the year, Momentus Inc. (NASDAQ:MNTS) was selected by the U.S. Air Force to demonstrate low-cost sensors for in-space Rendezvous and Proximity Operations (RPO). The company also recently shared that it had received around $1.2 million in payments since March 2025 for the successful execution of several milestones under the DARPA contract for the assembly of large structures in space.
Momentus Inc. (NASDAQ:MNTS)’s share price has been pressured in 2025, with a year-to-date decline of over 85% due to various factors, including financial challenges and several delisting warnings and deficiency notices over the past year.
8. Air Industries Group (NYSEAMERICAN:AIRI)
Share Price as of July 28: $3.49
Number of Hedge Fund Holders: 2
Air Industries Group (NYSEAMERICAN:AIRI) is among the 10 Best Low Priced Defense Stocks to Buy Now. On July 10, the firm announced that it was awarded a contract worth $5.4 million by the U.S. Air Force for landing gear steering collar components for the B-52 Aircraft.
Deliveries are scheduled to begin late next year and are expected to continue through the third quarter of 2027. Air Industries Group (NYSEAMERICAN:AIRI)’s CEO, Lou Melluzzo, expects the demand for the after-market product to support the B-52 to continue for several years to come, given the significance of the aircraft and the size of its fleet.
Earlier this year, in March, the company received two contracts with a combined value of approximately $3.3 million to provide landing and arresting gear components for the Navy’s E-2D Advanced Hawkeye aircraft. The order will support both the production of new aircraft and the maintenance, repair, and overhaul of existing ones in the fleet.
Air Industries Group (NYSEAMERICAN:AIRI) manufactures precision components and assemblies for major aerospace and defense contractors. Its offerings include landing gears, engine mounts, flight controls, and components for aircraft engines and other complex machines.
7. Mobilicom Limited (NASDAQ:MOB)
Share Price as of July 28: $3.24
Number of Hedge Fund Holders: 2
Mobilicom Limited (NASDAQ:MOB) is among the 10 Best Low Priced Defense Stocks to Buy Now. On July 21, the company announced securing $1.4 million in orders from a customer, which happens to be a leading manufacturer of small-sized drones in the United States.
The company stated that the customer is a Tier-1 manufacturer with annual sales exceeding $5 billion. Moreover, it integrates SkyHopper PRO as a vital component in drones sold to the U.S. Department of Defense (DoD).
Earlier in the year, Mobilicom Limited (NASDAQ:MOB) was added to the DoD’s shortlist of Blue UAS-certified vendors, resulting in an increase in interest from major defense contractors. CEO and Founder, Oren Elkayam, believes this will lead to further design wins for the company’s systems.
Elkayam expects President Trump’s executive order, Unleashing American Drone Dominance, signed last month, to significantly hike demand for drone technologies and add further momentum for the company.
Mobilicom Limited (NASDAQ:MOB) provides cybersecure solutions for the defense and commercial drones and robotics market.
6. Coda Octopus Group, Inc. (NASDAQ:CODA)
Share Price as of July 28: $7.65
Number of Hedge Fund Holders: 2
Coda Octopus Group, Inc. (NASDAQ:CODA) is among the 10 Best Low Priced Defense Stocks to Buy Now. The company is an established supplier to the Underwater/Subsea market. It sells technologies and equipment for 3D imaging, mapping, defense, and survey applications.
On May 13, the firm announced that its Marine Technology Business Unit received a $1.5 million order for DAVD tethered systems, bundled with Echoscope, for use by different U.S. Navy Commands. The DAVD Tethered System is currently operational across 9 naval commands, underscoring the U.S. Navy’s commitment to the adoption of the technology.
The recent order builds on an earlier contract award in March for 16 DAVD Untethered Systems (DUS) intended for the Special Operations Command community of users. Blair Cunningham, President of Technology at Coda Octopus Group, Inc. (NASDAQ:CODA), says the company is now also focusing on the broader adoption of the technology from foreign navies.
In April this year, Coda Octopus Group, Inc. (NASDAQ:CODA)’s UK-based defense business, Coda Octopus Martech Limited, was awarded a $1.4 million engineering services order by a leading UK defense contractor for sub-components to form part of a suite of autonomous mine sweeping systems.
Last month, Coda Octopus Group, Inc. (NASDAQ:CODA) declared financial results for the second quarter of fiscal 2025. The company reported a revenue of approximately $7 million, up 31.8% year-over-year. However, operating income declined 19.5% from the previous year, due to higher-than-usual commission costs and weakening of the U.S. Dollar against the British pound and Danish krone.
5. SIFCO Industries, Inc. (NYSEAMERICAN:SIF)
Share Price as of July 28: $5.02
Number of Hedge Fund Holders: 3
SIFCO Industries, Inc. (NYSEAMERICAN:SIF) is among the 10 Best Low Priced Defense Stocks to Buy Now. The stock has surged nearly 67% since the announcement of second-quarter and first-half results for fiscal 2025 on May 16.
For the quarter ended March 31, the company reported net sales of $19 million, down 3% from last year, primarily due to raw material sourcing challenges. Despite the dip, SIFCO Industries, Inc. (NYSEAMERICAN:SIF) narrowed its net loss from continuing operations to $(0.22) per diluted share from $(0.38) in Q2 2024. Total net loss also declined to $1.4 million from $1.6 million in the prior year’s quarter.
The company’s half-yearly performance has also been impressive, with net sales growing 9% year-over-year to $39.9 million. Total net loss for the first six months of fiscal 2025 stood at $3.7 million, down from approximately $5 million during the same period last year. Moreover, SIFCO Industries, Inc. (NYSEAMERICAN:SIF)’s backlog continues to grow and was reported at $129.2 million, reflecting robust demand for the firm’s products.
SIFCO Industries, Inc. (NYSEAMERICAN:SIF) produces forgings and machined components for the aerospace, energy, defense, and commercial space markets. According to Insider Monkey’s database for Q1 2025, 3 hedge funds held a stake in the company.
4. CPI Aerostructures, Inc. (NYSEAMERICAN:CVU)
Share Price as of July 28: $3.34
Number of Hedge Fund Holders: 3
CPI Aerostructures, Inc. (NYSEAMERICAN:CVU) is among the 10 Best Low Priced Defense Stocks to Buy Now. On July 30, the company announced that it was awarded follow-on orders worth $2.4 million from multiple customers to weld complex structural assemblies used on a U.S. military helicopter.
Dorith Hakim, President and CEO of CPI Aerostructures, Inc. (NYSEAMERICAN:CVU), welcomed the order, saying he was proud of the company’s rich history of providing components and assemblies for fixed and rotary wing aircraft for the U.S. military and allied forces.
He further added that CPI Aerostructures, Inc. (NYSEAMERICAN:CVU)’s fusion welding capability was widely regarded across the industry and that the recent orders demonstrate the company’s commitment to excellence in delivering fusion welded assemblies for its customers.
CPI Aerostructures, Inc. (NYSEAMERICAN:CVU) manufactures structural parts for fixed-wing aircraft and helicopters in the commercial and defense markets. In April this year, the company completed the delivery of an ALMDS pod structure in support of Northrop Grumman’s contract for a Korean program.
3. Satellogic Inc. (NASDAQ:SATL)
Share Price as of July 28: $3.55
Number of Hedge Fund Holders: 5
Satellogic Inc. (NASDAQ:SATL) is among the 10 Best Low Priced Defense Stocks to Buy Now. The stock has gained 18.60% year-to-date, with notable contract awards driving investor confidence.
The company was selected in April by a strategic defense and security customer to provide near-daily and ultra-low latency analytics from its AI-first constellation. The contract is valued at $30 million.
Earlier in the year, in February, Satellogic Inc. (NASDAQ:SATL) and Telespazio Brasil signed a multi-year agreement with Brazil’s Air Force (FAB) to provide low-latency satellite imagery for security operations within the country’s territory.
Satellogic Inc. (NASDAQ:SATL)’s move to U.S. jurisdiction in March has also helped in strengthening the company’s market position and enhancing investor access. On July 8, the company was included in the U.S. small-cap Russell 3000 Index.
Satellogic Inc. (NASDAQ:SATL) is a vertically integrated geospatial analytics company that delivers real-time insights for consumers, governments, and industries worldwide.
2. Smith & Wesson Brands, Inc. (NASDAQ:SWBI)
Share Price as of July 28: $8.08
Number of Hedge Fund Holders: 14
Smith & Wesson Brands, Inc. (NASDAQ:SWBI) is among the 10 Best Low Priced Defense Stocks to Buy Now, with 14 hedge funds holding a stake in the company, according to Insider Monkey’s database for Q1 2025.
However, the stock is down 21% year-to-date, with a significant plunge over the past month, following the company’s fourth-quarter earnings call for fiscal 2025. Smith & Wesson Brands, Inc. (NASDAQ:SWBI) reported an 11.6% year-over-year decrease in net sales. Non-GAAP net income declined from $22.1 million in the prior year to $9 million. Gross margin stood at 28.8%, down from 35.5% last year.
The company cited industry trends and macroeconomic challenges as factors behind a difficult quarter. However, the management remains confident that while the headwinds are likely to continue in the near term, SWBI is well-positioned to succeed, in part due to the continued strong performance of new products, helping the firm to maintain its dominant position in the firearms market.
Based on the analysis of three rating firms, Smith & Wesson Brands, Inc. (NASDAQ:SWBI) has a one-year share price target of $12, representing a 49% upside potential. Following the recent earnings call, Lake Street lowered the stock’s price target to $11 from $12.5, but maintained a Buy rating for its shares.
1. Planet Labs PBC (NYSE:PL)
Share Price as of July 28: $6.36
Number of Hedge Fund Holders: 23
Planet Labs PBC (NYSE:PL) is among the 10 Best Low Priced Defense Stocks to Buy Now. On July 17, the company announced a multi-year contract expansion with Colombia’s Instituto Geográfico Agustín Codazzi (IGAC), in partnership with Procalculo.
IGAC is a Colombian government body that is responsible for managing, generating, and disseminating geographic and cartographic data. In 2023, it signed a contract with Planet Labs PBC (NYSE:PL) for access to SkySat tasking and daily monitoring with PlanetScope to strengthen land-use planning in the country.
Under the contract expansion, IGAC will continue to leverage Planet Labs PBC (NYSE:PL)’s technology for national land management. It will also now incorporate AI-powered change detection services and the Planet Insights Platform, which will further assist the entity in infrastructure, urban planning, and environmental management.
Ashley Johnson, President and CFO at Planet Labs PBC (NYSE:PL) had the following to say on the agreement:
“By working in collaboration with IGAC and our partner Procalculo, we’re excited to see how Planet’s data is being used for nationwide disaster response, monitoring public policy compliance, and detecting changes through artificial intelligence across Colombia. By leveraging our platform and AI-powered analytics, IGAC will continue advancing near-daily broad area land management at scale.”
Planet Labs PBC (NYSE:PL) provides global daily satellite imagery and geospatial solutions. The stock has had impressive returns in 2025, gaining 55% year-to-date.
While we acknowledge the potential of PL to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than PL and that has 100x upside potential, check out our report about this cheapest AI stock.
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