ChatGPT Stock Advice: Top 8 Defense Stocks

2. Northrop Grumman Corporation (NYSE:NOC)

Number of Hedge Fund Holders: 42

Northrop Grumman Corporation (NYSE:NOC) is among the top 8 defense stocks based on ChatGPT’s advice. On October 22, UBS lifted its price target on the stock to $770 from $769, while maintaining a Buy rating on the company’s shares.

According to TheFly, the firm noted the defense contractor’s robust growth outlook for the years ahead, given its current portfolio. UBS believes Northrop currently has a conservative outlook for the outcomes of the reconciliation and repricing of the B-21 program, exposure to the Golden Dome project, and a potential contract for the F/A-XX program. These could have significant upside potential for the stock if the company were to secure contracts for these.

During a recent earnings call on October 21, Northrop Grumman Corporation (NYSE:NOC)’s CEO Kathy Warden said that the company is eyeing more new U.S. Air Force contracts for the B-21 program by the end of this year. The Congress, in July, passed the budget reconciliation bill, providing $4.5 billion to accelerate the production of the stealth bomber.

According to a report on Reuters on October 7, Northrop Grumman Corporation (NYSE:NOC) is also competing with Boeing to be chosen to produce the Navy’s next stealth fighter, the F/A-XX, with an announcement on the contract from the Pentagon expected soon.

In other related news, on October 23, Bernstein raised its price target for the stock to $696 from $674 and kept a Market Perform rating on its shares. The revision followed the company’s third-quarter earnings, in which it reported a strong beat with an EPS of $7.67 against estimates of $6.44.

Northrop Grumman Corporation (NYSE:NOC) is one of the largest defense contractors in the world. It is engaged in the design, development, integration, and maintenance of advanced systems across aeronautics, space, defense electronics, and mission solutions.