8 Best Mid Cap Defense Stocks to Buy

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6. Redwire Corporation (NYSE:RDW)

Number of Hedge Fund Holders: 32

Redwire Corporation (NYSE:RDW) is among the 8 Best Mid Cap Defense Stocks to Buy. The company showcased its upgraded Octopus E140 MWIR Electro-Optical/Infrared (EO/IR) aircraft payload during the Eurosatory event between June 15-19, 2026.

The next-generation gyrostabilized aircraft payload is known for providing advanced intelligence, surveillance, and reconnaissance capabilities, along with impressive image stability.

The E140 MWIR is built for operating in challenging environments without compromising on the effectiveness of the operation. The system combines Mid-Wave Infrared (MWIR) sensing with HD electro-optical (EO) imaging and robust onboard processing.

According to Redwire Corporation (NYSE:RDW)’s press release, key capabilities include clear and stable imagery at stand-off distances, flawless performance during both day and night, high-quality zoom performance, integrated GPS/INS, advanced onboard processing, and more.

The stock remains on analysts’ radar and sports a Moderate Buy rating, with an average upside potential of 55% as of the close on June 24.

Interest from institutional investors in the stock continues to grow. According to Insider Monkey’s database for Q1 2026, 32 hedge funds held a stake in the company, up from 28 at the end of Q4 2025.

Redwire Corporation (NYSE:RDW) is a global space and defense technology company that leverages artificial intelligence and digital engineering to deliver advanced technologies related to autonomous systems, aerospace infrastructure, and multi-domain operations.

While we acknowledge the potential of RDW to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than RDW and that has 100x upside potential, check out our report about the cheapest AI stock.

Click to continue reading and see the 5 Best Mid Cap Defense Stocks to Buy.

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