5 Undervalued Defense and Military Stocks to Buy Now

2. Northrop Grumman Corporation (NYSE:NOC)

Number of Hedge Fund Holders: 33

PE Ratio (as of March 10): 10.21

Northrop Grumman Corporation (NYSE:NOC) is a defense giant working on multiple military and aerospace projects with the Pentagon. It is a subcontractor on the F-35 fighter jet, and also manufactures radars, cybersecurity systems, and drones for the American military. The firm is also working on the B-21 stealth bomber, of which the US Air Force plans to buy 80 to 100 units to replace the Boeing B-52. Northrop Grumman Corporation (NYSE:NOC) reported earnings per share of $6.00 for the fourth quarter, beating analysts’ estimates by $0.04.

33 hedge funds held stakes in Northrop Grumman Corporation (NYSE:NOC) at the close of the fourth quarter, with a combined value of $561 million. This shows a positive trend from last quarter where 29 hedge funds held positions worth $910 million in the firm. Yacktman Asset Management was the leading shareholder of Northrop Grumman Corporation (NYSE:NOC) in Q4 2021, holding roughly 442,000 shares worth $171.2 million.

On March 7, analyst Matthew Akers at Wells Fargo kept an ‘Equal Weight’ rating on Northrop Grumman Corporation (NYSE:NOC) shares whilst raising the price target to $472 from $390. Akers believes that the stock’s valuation would likely remain on the higher side for some time to come owning to elevated geopolitical tensions. As of March 10, Northrop Grumman Corporation (NYSE:NOC) has seen its share price gain 48.18% in the last 12 months, and 25.44% in the last 6 months.