5 Best Defense Stocks to Buy That Are Too Cheap to Ignore

3. AAR Corp. (NYSE:AIR)

Share Price as of October 13, 2022: $39.39

Number of Hedge Fund Holders: 19

AAR Corp. (NYSE:AIR) is an American aviation company that is headquartered in Wood Dale, Illinois. The firm provides the defense sector with products such as engine and air frame parts, alongside providing inventory management services.

AAR Corp. (NYSE:AIR) was hit hard by the coronavirus pandemic as the global aviation industry saw its demand sapped. However, the firm has started to recover now, and its fiscal year 2022 saw revenues grow by 10.3%, with sales to its commercial customers growing by 34%.

AAR Corp. (NYSE:AIR) also signed an important contract with the Norwegian defense forces earlier this year to manage supply parts and forecast demand. Additionally, another big contract came from the U.S. Air Force which saw AAR Corp. (NYSE:AIR) win a $173 million contract for new cargo aluminum pallets. By the end of this year’s second quarter, 19 out of the 895 hedge funds polled by Insider Monkey had bought the company’s shares.

AAR Corp. (NYSE:AIR)’s largest investor in our hedge fund database is David Rosen’s Rubric Capital Management which owns 1.1 million shares that are worth $46 million.