Below we presented the list of 5 best defense stocks to buy for 2021. For a detailed discussion and a more comprehensive list see the 10 Best Defense Stocks to Buy for 2021.
5. Northrop Grumman Corporation (NYSE: NOC)
Northrop ranks 5th on the list of 10 best defense stocks to buy for 2021. The company is one of the biggest aerospace and defense technology players in the world, with over $33 billion in annual revenue, as of 2019. The company is involved in some of the most consequential projects for the U.S. government, including the development of the James Webb Space Telescope, an orbiting observatory scheduled to launch 2021; and production of the solid rocket boosters for NASA’s Space Launch System program. In September 2020, the company won a $13.3 billion contract to develop the Ground Based Strategic Deterrent (GBSD) intercontinental ballistic missile.
Northrop Grumman was able to grow its topline by around 40% since 2017, yet trading at a forward P/E ratio of only 13 according to Yahoo Finance. We believe it is a cheap stock and its 1.9% dividend yield may attract some income seeking investors in 2021.
Panayotis Takis Sparaggis’ Alkeon Capital Management is one of the leading hedge funds having stakes in the Virginia-based company, with $102.76 million worth of shares. Overall, 42 hedge funds had Northrop in their portfolios entering the fourth quarter, down from 47 funds a quarter earlier.