5 Best Small-Cap Defense Stocks to Invest in

In this article, we will be looking at the 5 best small-cap defense stocks to invest in. To read our detailed analysis of the defense sector, you can go directly to see the 11 Best Small-Cap Defense Stocks to Invest in.

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

Number of Hedge Fund Holders: 15

Market Capitalization: $1.8 billion

Mercury Systems, Inc. (NASDAQ:MRCY) manufactures and sells components, products, modules, and subsystems for the aerospace and defense industry. It is based in Andover, Massachusetts.

On February 7, analysts at RBC Capital maintained a Sector Perform rating and a $30 price target on Mercury Systems, Inc. (NASDAQ:MRCY).

In total, 15 hedge funds were long Mercury Systems, Inc. (NASDAQ:MRCY) in the fourth quarter, with a total stake value of $325.7 million.

Baron Funds mentioned Mercury Systems, Inc. (NASDAQ:MRCY) in its fourth-quarter 2023 investor letter:

“We added to our position in Mercury Systems, Inc. (NASDAQ:MRCY), the leading U.S. Tier 2 defense electronics manufacturer and integrator, as we are convinced that the new management team put in place in August 2023 has made meaningful progress in their turnaround efforts, and that shares remain meaningfully undervalued.”