In this article, we will list the 5 Best Defense Stocks That Will Skyrocket. Please visit 10 Best Defense Stocks That Will Skyrocket if you would like to see the extended list and the methodology behind it.
5. The Boeing Company (NYSE:BA)
Stock Upside Potential: 22.86%
Number of Hedge Fund Holders: 114
The Boeing Company (NYSE:BA) is one of the best defense stocks that will skyrocket. On April 14, The Boeing Company (NYSE:BA) confirmed it delivered 143 commercial aircraft in the first quarter of the year. The deliveries included 114 Boeing 737 aircraft, 15 Boeing 787 aircraft, 8 Boeing 777 aircraft, and 6 Boeing 767 aircraft.
The company’s Defense Space and Security division also reported deliveries. The orders included 17 AH-64 Apache helicopters, made up of two new aircraft, and 15 remanufactured units. Boeing also delivered two CH-47 Chinook helicopters, one new and one renewed.
On the other hand, the US Army has awarded the company a $324 million contract to deliver 6 CH-47F Block II Chinook helicopters. The new contract brings the total number of CH-47F Block II aircraft under contract to 24. It builds on the company securing a $1.19 billion, three-year contract to maintain and support the Army’s Apache attack helicopters and Chinook heavy-lift helicopters operated by Britain’s Royal Air Force.
In February, the company received initial qualification for 777-9 training devices. Consequently, the company is one step closer to conducting regulator-approved training on the Federal Aviation Administration (FAA) and European Union Aviation Safety Agency (EASA) issuing simulator qualification certificates.
The Boeing Company (NYSE:BA) manufactures combat and surveillance aircraft, cargo planes, satellites, weapons, and is advancing autonomous systems.
4. CACI International Inc (NYSE:CACI)
Stock Upside Potential: 31.26%
Number of Hedge Fund Holders: 42
CACI International Inc (NYSE:CACI) is one of the best defense stocks poised to skyrocket. On March 24, CACI International Inc (NYSE:CACI) secured a five-year expertise task order worth $85 million. Under the agreement, the company is to provide critical engineering and technical support for ships, submarines, and other naval vessels.
The company was selected for its robust cybersecurity measures and innovative software-defined solutions that can enhance the Navy’s operational capabilities and set new efficiency standards. CACI is to offer data analysis software development and control system enhancement to improve the design and operation of naval assets.
CACI International has already secured a $287 million contract to spearhead the modernization of the US Army’s Integrated Personnel and Pay System – Army (IPPS-A). The company is tasked with providing advanced software-defined solutions that enhance quality, boost flexibility and adaptability, and strengthen confidence. It has also been awarded a five-year expertise task order valued at up to $306 million to provide software development and sustainment to the Defense Agencies Initiative (DAI).
CACI International Inc (NYSE:CACI) provides specialized technology, expertise, and services primarily to the U.S. federal government, including defense, intelligence, and civilian agencies. They focus on national security and modernization by delivering solutions in cybersecurity, data analytics, enterprise IT, and agile software development.
3. Parsons Corporation (NYSE:PSN)
Stock Upside Potential: 37.70%
Number of Hedge Fund Holders: 30
Parsons Corporation (NYSE:PSN) is one of the best defense stocks that will skyrocket. On April 14, Parsons Corporation (NYSE:PSN) confirmed it has been selected to provide construction management services for the Newtown Creek Combined Sewer Overflow Storage Tunnel project in New York City.
According to the New York City Department of Environmental Protection (DEP), the company is tasked with delivering a major underground infrastructure program to eliminate untreated sewer discharges into local waterways. It will provide construction management services for a large-diameter storage tunnel, tunnel dewatering pump station, and other structures. It was selected after working on more than 250 tunnels and ocean outfalls globally.
In addition, the company’s joint venture with GSI Americas has secured a $25 million contract with the United States Coast Guard (USCG). The joint venture is tasked with providing program management services to advance the USCG’s Execution Plan. The ultimate goal is to deliver transformational upgrades across Coast Guard assets, technology, and shore infrastructure.
Parsons Corporation (NYSE:PSN) is a leading technology-driven firm providing integrated solutions for the global defense, intelligence, and critical infrastructure markets. They specialize in cybersecurity, missile defense, space, geospatial intelligence, and infrastructure engineering, helping clients secure, manage, and modernize physical and digital assets. The program is crucial to improving water quality and protecting public health.
2. Palantir Technologies Inc. (NASDAQ:PLTR)
Stock Upside Potential: 43.01%
Number of Hedge Fund Holders: 89
Palantir Technologies Inc. (NASDAQ:PLTR) is one of the best defense stocks that will skyrocket. On March 30, Palantir Technologies Inc. (NASDAQ:PLTR) reached an agreement to renew and expand its strategic partnership with Stellantis. The new five-year agreement is to support Stellantis’ efforts in industrialization and to secure the use of data and artificial intelligence.
Stellantis has also agreed to broaden its use of Palantir Foundry. Consequently, it will start leveraging Palantir Artificial Intelligence Platform (AIP) in select business functions. The integration should allow Stellantis teams to consolidate fragmented datasets, improve transparency, and enable faster decision-making.
On the other hand, Wedbush has touted Palantir’s commitment to accelerating its US commercial and government businesses. Its US commercial grew 137% year over year, while US government business grew 66%, enabling revenue growth of 56% last year. Consequently, the research firm has reiterated an Outperform rating on the stock with a $230 price target.
Palantir Technologies Inc. (NASDAQ:PLTR) provides AI-enabled data analytics and software platforms (Gotham, Foundry, AIP) to defense and intelligence agencies, enabling them to integrate massive, siloed datasets for real-time decision-making. It powers multi-domain operations by connecting sensors to shooters, AI-driven targeting, threat detection, and battlefield intelligence.
1. AeroVironment, Inc. (NASDAQ:AVAV)
Stock Upside Potential: 55.87%
Number of Hedge Fund Holders: 40
AeroVironment, Inc. (NASDAQ:AVAV) is one of the best defense stocks that will skyrocket. On April 7, AeroVironment, Inc. (NASDAQ:AVAV) received a $25 million contract from the US Air Force. Under the terms of the contract, the company is tasked with transitioning human health and performance technologies from research to field deployment.
The company is to mature mid-stage sensor, diagnostic, and material technologies to accelerate the delivery of deployable solutions that enhance warfighter readiness and survivability. AeroVironment was selected because it has the tools, track record, and technical expertise to tackle unique challenges with health-focused devices that have prevented them from reaching operational use. AeroVironment is to test at scale and advance health-focused technologies and devices.
Earlier, AeroVironment was selected by the United States Navy to provide Contractor-Owned, Contractor-Operated (COCO) Intelligence, Surveillance, and Reconnaissance (ISR) services. The company is competing for delivery orders to provide turnkey, persistent ISR support using autonomous platforms as part of a new initiative to expand and modernize ISR capabilities.
AeroVironment, Inc. (NASDAQ:AVAV) is a defense technology company specializing in the design, development, and manufacture of autonomous robotic systems, including small unmanned aircraft systems (UAS), loitering munitions (such as the Switchblade kamikaze drones), counter-UAS systems, and tactical missile systems for global defense, government, and commercial customers.
While we acknowledge the potential of AVAV 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 AVAV and that has 100x upside potential, check out our report about the cheapest AI stock.
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