5 Best Mid Cap Defense Stocks to Buy

In this article, we will list the 5 Best Mid Cap Defense Stocks to Buy. Please visit 8 Best Mid Cap Defense Stocks to Buy if you’d like to see an extended list and the methodology behind it.

5. Mercury Systems, Inc. (NASDAQ:MRCY)

Number of Hedge Fund Holders: 32

Mercury Systems, Inc. (NASDAQ:MRCY) is among the 8 Best Mid Cap Defense Stocks to Buy, with 32 hedge funds holding a stake in the company as per Insider Monkey’s database for Q1 2026.

Shares have surged 44% year-to-date as of the close on June 24, making it one of the best-performing defense stocks so far in 2026. However, that appears to have limited its upside potential as Wall Street analysts have a Moderate Buy rating on MRCY and see a downside of 6%.

Recent updates include William Blair analyst Jonathan Ho, who on June 5 reiterated the firm’s Buy rating, according to a report on TipRanks.

Earlier on June 1, Jefferies lifted its price target on Mercury Systems, Inc. (NASDAQ:MRCY) to $105 from $95 and maintained a Hold rating. The adjustment came after the firm’s meeting with senior company leaders.

Jefferies noted record bookings in recent quarters and expects Mercury’s gross margins to improve as low-margin backlog rolls off. Moreover, the firm anticipates growth opportunities ahead from rising budgets and the Golden Domes project.

The aerospace and defense technology company reported robust results for the third quarter of fiscal 2026, with revenue organically increasing 11.5% year-over-year to $236 million. Adjusted EPS came in at 27 cents, up from 6 cents during the same quarter last year. It ended the quarter with a record backlog of $1.6 billion, up 17.9% from the prior year.

Mercury Systems, Inc. (NASDAQ:MRCY) provides mission-critical processing that enhances the accessibility of advanced technologies for complex aerospace and defense missions.