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

3. Planet Labs PBC (NYSE:PL)

Number of Hedge Fund Holders: 23

Planet Labs PBC (NYSE:PL) is among the 10 Best Small Cap Defense Stocks to Buy According to Hedge Funds. The company has received four major contract awards from customers in the Defense and Intelligence sector for its new AI-enabled solutions, building on the momentum discussed in its latest earnings call in June.

These contracts will support government clients in the United States and internationally through improved situational awareness and informed decision-making. The business wins underscore the rising demand for Planet Labs PBC (NYSE:PL)’s national security offerings, which use proprietary satellite data and advanced AI capabilities.

The recent agreements include a multi-year, €240 million contract from Germany to support European peace and security; an expansion of Planet Labs PBC (NYSE:PL)’s existing HSA contract with the Defense Innovation Unit (DIU) in support of INDOPACOM; a seven-figure deal with the U.S. Navy for maritime domain awareness in the Pacific Ocean region; and another seven-figure contract from NATO for space-based surveillance, maritime domain awareness functions, and enhanced indications and warnings.

Planet Labs PBC (NYSE:PL) provides global daily satellite imagery and geospatial solutions. The stock has had impressive returns in 2025, gaining 59% year-to-date as of July 15.