In this article, we will list the 5 Best Large Cap Defense Stocks to Buy According to Hedge Funds. Please visit 10 Best Large Cap Defense Stocks to Buy According to Hedge Funds if you’d like to see an extended list and the methodology behind it.
5. Woodward, Inc. (NASDAQ:WWD)
Number of Hedge Fund Holders: 69
Woodward, Inc. (NASDAQ:WWD) is among the 10 Best Large Cap Defense Stocks to Buy According to Hedge Funds. On May 1, Deutsche Bank raised the price target on the stock to $470 from $445 and maintained a Buy rating.
The adjustment followed the company’s second quarter 2026 earnings report. According to TipRanks, the bank noted that there were many factors regarding WWD’s investments that were not appreciated enough. The analyst further added that Deutsche was bullish on the stock’s continued upside potential over the short and medium term.
Earlier on April 30, UBS analyst Gavin Parsons lifted the price target on Woodward, Inc. (NASDAQ:WWD) to $429 from $427, while reiterating a Buy rating. The firm noted the recent earnings beat and told investors that the company was well placed to continue the momentum despite potential headwinds.
As of the close of business on May 5, Woodward, Inc. (NASDAQ:WWD) is a Strong Buy based on the recommendations of 9 analysts and has an average share price upside potential of 20%.
The company posted net sales of $1.1 billion for the quarter, increasing 23% year-over-year. Earnings per share came in at $2.19, beating Wall Street’s estimates. Moreover, the management also announced upbeat guidance for the remainder of the year, lifting the outlook for both sales and earnings per share.
Woodward, Inc. (NASDAQ:WWD) designs, produces, and services energy conversion and control solutions for the aerospace and industrial equipment markets.
4. TransDigm Group Incorporated (NYSE:TDG)
Number of Hedge Fund Holders: 79
TransDigm Group Incorporated (NYSE:TDG) is among the 10 Best Large Cap Defense Stocks to Buy According to Hedge Funds. On May 5, the company reported financial results for the second quarter of fiscal 2026.
Net sales grew 18% from the prior year to $2,544 million. Net income totalled $536 million, up 12% year-over-year, with the company attributing the gain to higher sales, effective use of its value-driven operational strategy, and deferred compensation expenses. Adjusted EPS came in at $9.85, up 8% from the same period in fiscal 2025.
Given the strong quarterly performance and recent acquisitions of Jet Parts Engineering and Victor Sierra, TransDigm Group Incorporated (NYSE:TDG) said it was raising the full-year guidance at the midpoint for sales by $420 million, adjusted EPS by $1.14, and EBITDA by $210 million.
Wall Street has a Moderate Buy rating on TDG with an average share price upside potential of 20%, as of the close of business on May 5. On the other hand, 79 hedge funds hold a stake in the company, as of Q4 2025, according to Insider Monkey’s database. This is up from 68 in the prior quarter, reflecting growing institutional interest.
TransDigm Group Incorporated (NYSE:TDG) manufactures engineered aircraft components for commercial and military aircraft.
3. RTX Corporation (NYSE:RTX)
Number of Hedge Fund Holders: 79
RTX Corporation (NYSE:RTX) is among the 10 Best Large Cap Defense Stocks to Buy According to Hedge Funds. On April 30, the company announced that its board of directors had approved a quarterly cash dividend of $0.73 per share, representing a 7.4% sequential increase.
The amount is scheduled for payment on June 11, 2026, to all shareholders on record as of the close on May 22. The aerospace and defense company has paid cash dividends on its common stock for 90 consecutive years.
In other news, RTX Corporation (NYSE:RTX) reported sales of $22.1 billion for the first quarter, reflecting a 9% growth from the prior year. Its adjusted EPS came in at $1.78, beating estimates by 27 cents and up 21% year over year. It ended the quarter with a record backlog of $271 billion, up 25%, and driven by large defense and commercial orders.
The company lifted its adjusted sales and earnings outlook for the full year, citing the strong financial performance and strength in the defense business. The annual top-line figure is now expected to be between $92.5 billion and $93.5 billion, while adjusted EPS is projected to be between $6.7 and $6.9.
As of the close of business on May 5, the stock is a Moderate Buy with an average share price upside potential of 28%, based on recommendations from 15 analysts.
RTX Corporation (NYSE:RTX) is a giant in the global aerospace and defense industry, providing systems and services to commercial, military, and government clients. It operates through three main businesses: Collins Aerospace, Pratt & Whitney, and Raytheon.
2. The Boeing Company (NYSE:BA)
Number of Hedge Fund Holders: 114
The Boeing Company (NYSE:BA) is among the 10 Best Large Cap Defense Stocks to Buy According to Hedge Funds. On April 27, the company announced that it had completed the first test flight of the aerial refueling drone, MQ-25A Stingray, with the U.S. Navy.
The two-hour flight demonstrated the aircraft’s controls and is seen as an important milestone, as it marks the first time a Navy MQ-25A Stingray has flown, bringing it closer to operational deployment on aircraft carriers.
In other news, The Boeing Company (NYSE:BA) continues to remain on analysts’ radar and currently sports a Strong Buy rating with an upside potential of 22% as of the close on May 5.
Recent updates include Tigress Financial’s on April 29, which lifted its price target on the stock to $295 from $290 and reiterated a Buy rating. The firm told investors that the company’s robust order backlog, rising demand for air travel, and expansion in defense, space, and cybersecurity present a strong opportunity for share price appreciation.
Earlier on April 23, Morgan Stanley also raised its price target on the aerospace company’s shares by $5 dollars to $250, citing ‘progress’ on commercial aircraft production rates and free cash flow in the recent quarter, said a report on TipRanks. The firm maintained its Equal-Weight rating.
The Boeing Company (NYSE:BA) is a leading aerospace company that manufactures commercial airplanes, space systems, and defense equipment for customers in more than 150 countries.
1. GE Aerospace (NYSE:GE)
Number of Hedge Fund Holders: 117
GE Aerospace (NYSE:GE) is among the 10 Best Large Cap Defense Stocks to Buy According to Hedge Funds. As of the close of business on May 5, the stock is a consensus Strong Buy, with an average upside potential of 24% based on 13 analysts’ recommendations.
Recent updates include Jefferies trimming its price target on the stock to $365 from $375 on April 26, while maintaining a Buy rating. The adjustment followed the company’s first quarter 2026 earnings report.
GE Aerospace (NYSE:GE) reported adjusted revenue of $11.6 billion for the quarter, reflecting a 29% year-over-year increase. Adjusted EPS came in at $1.86, up 25% from the prior year and beating expectations by 26 cents. Total orders surged 87%, reaching $23 billion.
Considering the strong start to the year, the company said it was reaffirming full-year guidance and was on track to hit the high end of its profit forecast. The management further added that it does not anticipate a recession, even as it prepares for higher oil prices, supply challenges, and sluggish growth.
In other news, institutional interest in the stock continues to grow. According to Insider Monkey’s database as of the end of Q4 2025, 117 hedge funds held a stake in the company, up from 102 in the prior quarter.
GE Aerospace (NYSE:GE) is a global aerospace propulsion, services, and systems company with an installed base of around 30,000 military and 50,000 commercial aircraft engines. It operates through two segments: Commercial Engines & Services (CES) and Defense & Propulsion Technologies (DPT).
While we acknowledge the potential of GE 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 GE and that has 100x upside potential, check out our report about the cheapest AI stock.
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