In this article, we will take a look at the 5 best small-cap defense stocks to buy now. If you want to explore similar stocks, you can go to 10 Best Small Cap Defense Stocks to Buy Now.
5. Astronics Corporation (NASDAQ:ATRO)
Market Cap as of April 27: $480.80 Million
Number of Hedge Fund Holders: 17
Astronics Corporation (NASDAQ:ATRO) designs and manufactures products for the aerospace, defense, and electronics industries across the globe. The company has two business segments: Aerospace and Test Systems. On March 2, Astronics Corporation (NASDAQ:ATRO) reported earnings for the fiscal fourth quarter of 2022. The company generated a revenue of $158.15 million, up 36.28% year over year and ahead of Wall Street estimates by $3.15 million.
As of January 9, Truist analyst Michael Ciarmoli has a $8 price target and a Hold rating on Astronics Corporation (NASDAQ:ATRO). As of April 27, the stock has gained 45.17% year to date and has a market cap of $480.80 million. Astronics Corporation (NASDAQ:ATRO) is one of the best small-cap defense stocks to buy now.
Astronics Corporation (NASDAQ:ATRO) was a part of 17 investors’ portfolios at the close of Q4 2022 that disclosed positions worth $66.3 million in the company. As of December 31, 325 Capital is the top stockholder and has a position worth $17.4 million.
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4. Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS)
Market Cap as of April 27: $1.61 Billion
Number of Hedge Fund Holders: 18
Kratos Defense & Security Solutions, Inc (NASDAQ:KTOS) operates as a contractor for the U.S. department of defense and offers directed-energy weapons, unmanned systems, missile defense, training and combat systems among other products for the defense industry. As of April 27, Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) has returned 27.02% to investors on a year-to-date basis and has a market cap of $1.61 billion. The stock is placed fourth among the best small-cap defense stocks to buy now.
On February 24, Canaccord analyst Austin Moeller upgraded Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) to Buy from Hold and raised his price target on the stock to $14 from $11.50.
Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) was spotted on 18 investors’ portfolios at the close of Q4 2022 that held collective stakes worth $133.4 million in the company. Of those, ARK Investment Management was the most prominent shareholder and held a position worth $79.9 million.
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3. V2X, Inc. (NYSE:VVX)
Market Cap as of April 27: $1.28 Billion
Number of Hedge Fund Holders: 19
V2X, Inc. (NYSE:VVX) is a leading provider of critical mission solutions to defense companies across the globe. At the end of the fourth quarter of 2022, 19 hedge funds were long V2X, Inc. (NYSE:VVX) and held stakes worth $44.5 million in the company. Of those, Portolan Capital Management was the leading investor in the company and disclosed a position worth $4.8 million.
On March 3, V2X, Inc. (NYSE:VVX) posted strong earnings for the fourth quarter of fiscal 2023. The company reported an EPS of $0.92 and outperformed EPS estimates by $0.03. The company’s revenue for the quarter amounted to $978.17 million and beat Wall Street consensus by $7.58 million. As of April 27, V2X, Inc. (NYSE:VVX) has surged 11.45% over the past 12 months and has a market cap of $1.28 billion. The stock is one of the best small-cap defense stocks to buy now according to hedge funds.
As of January 25, RBC Capital analyst Ken Herbert has a $55 price target and an Outperform rating on V2X, Inc. (NYSE:VVX).
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2. AAR Corp. (NYSE:AIR)
Market Cap as of April 27: $1.81 Billion
Number of Hedge Fund Holders: 20
AAR Corp. (NYSE:AIR) provides various parts and services to commercial aviation, government, and defense customers across the globe. As of April 27, the stock has a market cap of $1.81 billion and has gone up by 16.21% over the past 6 months. AAR Corp. (NYSE:AIR) is placed second on our list of the best small-cap defense stocks to buy now.
On March 22, Truist raised its price target on AAR Corp. (NYSE:AIR) to $60 from $57 and maintained a Buy rating on the shares.
AAR Corp. (NYSE:AIR) was a part of 20 hedge funds’ portfolios at the close of the fourth quarter of 2022. These funds held positions worth $125.7 million in the company. As of December 31, Rubric Capital Management is the top stockholder in the company and has a position worth $65.7 million.
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1. Triumph Group, Inc. (NYSE:TGI)
Market Cap as of April 27: $691.71 Million.
Number of Hedge Fund Holders: 22
Triumph Group, Inc. (NYSE:TGI) is a leading American provider of aero-structures and aircraft components for the aerospace and defense industry across the globe. Over the past 3 months, the stock has received 1 Buy rating and 2 Hold ratings from Wall Street analysts. The stock has an average price target of $12.67, which implies an upside of 19.08% from current levels.
As of April 27, Triumph Group, Inc. (NYSE:TGI) has gained 15.40% over the past 6 months and has a market cap of $691.71 million. The stock is one of the best small-cap defense stocks to buy according to hedge funds.
At the close of Q4 2022, 22 hedge funds were eager on Triumph Group, Inc. (NYSE:TGI) and disclosed positions worth $109.9 million in the company. Of those, Maple Rock Capital is the dominant shareholder in the company and has a stake worth $25.3 million.
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