8 Best Small-Cap Defense Stocks to Buy Right Now

6. Astronics Corporation (NASDAQ:ATRO)

Share Price Upside Potential: 18.89%

Number of Hedge Fund Holders: 37

Astronics Corporation (NASDAQ:ATRO) is among the 8 Best Small-Cap Defense Stocks to Buy Right Now. On November 5, Truist Financial analyst Michael Ciarmoli reiterated a Buy rating on the stock with a share price target of $58.

The reaffirmation builds on an earlier adjustment by the firm on October 15, when it lifted the price target on the stock to $58 from $49 and maintained a Buy rating on its shares, as part of broader analysis before third quarter results in the Aerospace and Defense industry, in which Truist noted an uptick in aftermarket demand trends and said it was favoring companies that supply to the 737 MAX program.

Truist’s latest update followed Astronics Corporation’s (NASDAQ:ATRO) third-quarter earnings report, in which it reported a 3.8% increase in revenue to $211.4 million, led by robust demand across the company’s product lines, and most notably an 8.5% sales growth in the Aerospace segment.

Gross profit represented 30.5% of sales during the quarter, an improvement from 27.1% in the prior year’s period due to increased volume, effective production, and specific pricing actions. Stronger profitability helped the company improve diluted EPS by 44% year over year to $0.49, beating estimates by 7 cents.

Chairman, President, and CEO Peter Gundermann anticipates a strong end to the year, with fourth-quarter sales expected between $225 million and $235 million, which would help the company reach its record annual sales in the range of $847 million to $857 million.

The stock has soared in 2025, gaining over 220% year-to-date as of November 14.

Astronics Corporation (NASDAQ:ATRO) provides advanced technologies to global aerospace, defense, and electronics clients.