5 Best American Defense Stocks To Buy According to Analysts

In this piece, we will take a look at the five best American defense stocks to buy according to analysts. If you want to learn more about American defense stocks and how their shares perform in different environments, then read 11 Best American Defense Stocks To Buy According to Analysts.

5. VSE Corporation (NASDAQ:VSEC)

Average Analyst Share Price Target Upside: 33.15%

Average Analyst Share Price Target: $80.25

VSE Corporation (NASDAQ:VSEC) serves the procurement, sourcing, testing, and other needs of the military aviation, defense, and other sectors. Diversification through acquisition and an uptick in aviation demand t seems to have boded well for the firm as it has beaten analyst EPS estimates in all four of its latest quarters.

As of September 2023 end, ten out of the 910 hedge funds tracked by Insider Monkey’s research were the firm’s investors. VSE Corporation (NASDAQ:VSEC)’s biggest stakeholder among these is small cap stock guru Chuck Royce’s Royce & Associates as it owns $22.3 million worth of shares.

4. Sturm, Ruger & Company, Inc. (NYSE:RGR)

Average Analyst Share Price Target Upside: 42.10%

Average Analyst Share Price Target: $62.00

Sturm, Ruger & Company, Inc. (NYSE:RGR) is a gun company that sells rifles, pistols, revolvers, and associated accessories. As it celebrates its 75th anniversary, the firm is facing a bit of legal troubles as a lawsuit recently allowed to proceed by a court alleges it of being involved in gun trafficking.

After digging through 910 hedge funds for their September quarter of 2023 shareholdings, Insider Monkey found that 11 had invested in Sturm, Ruger & Company, Inc. (NYSE:RGR). Jim Simons’ Renaissance Technologies owned the largest stake that was worth $49.4 million.

3. V2X, Inc. (NYSE:VVX)

Average Analyst Share Price Target Upside: 57.40%

Average Analyst Share Price Target: $60.33

V2X, Inc. (NYSE:VVX) is a backend defense company that provides aerospace, logistics, training, and other services. As the U.S. struck Iran linked targets in the Middle East, a month earlier V2X, Inc. (NYSE:VVX) had won a $190 million contract for a U.S. Army war fighter program.

For their third quarter of 2023 shareholdings, 11 out of the 910 hedge funds surveyed by Insider Monkey had invested in the firm. V2X, Inc. (NYSE:VVX)’s biggest hedge fund investor is Frederick Disanto’s Ancora Advisors due to its $16.7 million investment.

2. Rocket Lab USA, Inc. (NASDAQ:RKLB)

Average Analyst Share Price Target Upside: 104.79%

Average Analyst Share Price Target: $8.13

Rocket Lab USA, Inc. (NASDAQ:RKLB) is a rocket company headquartered in Long Beach California. It operates a small lift rocket called Electron, and the firm won a big defense contract worth $515 million in January 2024 to develop satellites for the Space Development Agency.

As of September 2023 end, 11 out of the 910 hedge funds tracked by Insider Monkey were Rocket Lab USA, Inc. (NASDAQ:RKLB) investors.

1. Planet Labs PBC (NYSE:PL)

Average Analyst Share Price Target Upside: 119.56%

Average Analyst Share Price Target: $4.94

Planet Labs PBC (NYSE:PL) is a leading defense company that has provided planners and analysts with the ability to receive high definition, high frequency satellite footage of targets and defense sites all over the world. It’s been having a great time on the financial front by having beaten analyst EPS estimates in all four of its latest quarters.

During Q3 2023, nine out of the 910 hedge funds profiled by Insider Monkey had bought Planet Labs PBC (NYSE:PL)’s shares.

Disclosure: None. You can also take a look at Cathie Wood’s Latest Stock Picks: 11 Biggest Positions and 12 Best Performing Cybersecurity Stocks.

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