5 Best Aerospace and Defense Stocks to Buy According to Hedge Funds

4. TransDigm Group Incorporated (NYSE:TDG)

Number of Hedge Fund Holders: 87

TransDigm Group Incorporated (NYSE:TDG) is among the 10 Best Aerospace and Defense Stocks to Buy According to Hedge Funds, with 87 hedge funds holding a stake in the company at the end of the first quarter of 2026. This is up from 79 in Q4 2025, reflecting growing institutional investor interest.

On June 2, UBS analyst Gavin Parsons reiterated a Buy rating on the stock with a price target of $1,645, a reaffirmation of the firm’s earlier update on May 6 after the company reported results for Q2.

Based on recommendations from 12 analysts, TDG is a Moderate Buy with an average share price upside potential of 23% as of the close on June 5.

TransDigm Group Incorporated (NYSE:TDG) reported an 18% increase in quarterly net sales to $2,544 million, while net income increased 12% year-over-year to total $536 million. Adjusted earnings per share were posted at $9.85, up 8% from the same period in fiscal 2025.

The company attributed the improved profitability to increased net sales, deferred compensation expenses, and the success of its value-driven operational strategy. Given the strong results and the impact from recent acquisitions, the management lifted its full-year outlook for sales, EBITDA, and adjusted earnings per share.

TransDigm Group Incorporated (NYSE:TDG) manufactures engineered aircraft components for commercial and military aircraft.

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