5 Defense Stocks to Buy Amid Escalating Geopolitical Tensions

In this article, we will discuss the 5 defense stocks to buy amid escalating geopolitical tensions. If you want to explore similar stocks, you can read 10 Defense Stocks to Buy Amid Escalating Geopolitical Tensions.

5. General Dynamics Corporation (NYSE:GD)

Number of Hedge Fund Holders: 42

On August 25, General Dynamics Corporation (NYSE:GD) announced that it has secured a $1.14 billion contract from the U.S. Army to provide 250 Abrams battle tanks to Poland. On September 16, the U.S. Army awarded General Dynamics Corporation (NYSE:GD) with a $133 million contract for MK80 series general purpose Tritonal bomb components.

On August 29, RBC Capital analyst Ken Herbert started coverage of General Dynamics Corporation (NYSE:GD) with an Outperform rating and a $275 price target.

Shares of General Dynamics Corporation (NYSE:GD) have surged 7% year to date, as of September 23. The company is also a dividend grower and has a track record of 27 years of consistent dividend increases. As of September 23, the stock is offering a forward dividend yield of 2.21% which the company supports with free cash flows of $4.8 billion.

Insider Monkey spotted 42 hedge funds that held stakes in General Dynamics Corporation (NYSE:GD) at the close of Q2 2022. The total stakes of these hedge funds amounted to $7.71 billion.

As of June 30, Longview Asset Management is the largest shareholder in General Dynamics Corporation (NYSE:GD) and owns over 30 million shares of the company.

Here is what Oakmark Fund had to say about General Dynamics Corporation (NYSE:GD) in its second-quarter 2022 investor letter:

“Finally, General Dynamics Corporation (NYSE:GD)’s defense business enabled the stock to resist the bear market’s downward pressure. We eliminated the position to fund more attractive holdings.”