10 Defense & Aerospace Stocks Gaining From Rising Geopolitical Spending

6. Northrop Grumman Corporation (NYSE:NOC)

Year to Date Gain: 13.40%

Number of Hedge Fund Holders: 59

Northrop Grumman Corporation (NYSE:NOC) is one of the defense & aerospace stocks gaining from rising geopolitical spending. On January 12, Northrop Grumman secured a $233 million contract for the manufacture and delivery of a new advanced lightweight torpedo. The contract to the US Navy also features a custom-designed warhead for increased lethality.

The company is to handle the integration and initial proof of manufacturing at the Plymouth, Minnesota, facility and at the Allegany Ballistic Laboratory in West Virginia. The advanced weapon was developed as part of a strategic agreement with the Australian Defense Force and the US Navy.

“Northrop Grumman is leveraging over 80 years of innovative torpedo technology, combined with our capacity and speed in delivery, to accelerate the design qualification and manufacturing for the advanced lightweight torpedo,” said Dave Fine, vice president of armament systems at Northrop Grumman.

The $233 million contract comes on the heels of UBS analyst Gavin Parsons raising the stock’s price target to $777 from $770 while reiterating a Buy rating. Citigroup also asserted strong momentum on the stock and raised the price target to $715 from $654 while reiterating a Buy rating.

Northrop Grumman Corporation (NYSE:NOC) is a global aerospace and defense technology company that designs, develops, manufactures, and supports advanced systems and products for space, aeronautics, defense, and cyberspace, focusing on national security and human discovery for the U.S. and its allies.