Goldman Sachs Defense Stocks: Top 5 Stock Picks

In this article, we discuss the top 5 Goldman Sachs defense stocks. If you want to read our detailed discussion on the defense sector, head over to Goldman Sachs Defense Stocks: Top 10 Stock Picks. 

5. General Dynamics Corporation (NYSE:GD)

Goldman Sachs’ Stake Value: $290,874,869

Number of Hedge Fund Holders: 46

General Dynamics Corporation (NYSE:GD) functions as a global aerospace and defense firm, conducting its operations across four main segments – Aerospace, Marine Systems, Combat Systems, and Technologies. It is one of the top Goldman Sachs defense stocks, with the firm holding a $290.8 million stake in the company.

On August 1, General Dynamics Corporation (NYSE:GD) declared a $1.32 per share quarterly dividend, in line with previous. The dividend is payable on November 10, to shareholders of record on October 6.

According to Insider Monkey’s second quarter database, 46 hedge funds were bullish on General Dynamics Corporation (NYSE:GD), compared to 43 funds in the last quarter. James A. Star’s Longview Asset Management is the leading position holder in the company, with 28.2 million shares worth just over $6 billion.

Here is what Oakmark Global Fund has to say about General Dynamics Corporation (NYSE:GD) in its Q1 2021 investor letter:

“The second new U.S. equity purchase was General Dynamics, a leading U.S. defense contractor and owner of the world’s premier business jet franchise (Gulfstream). We were able to purchase this high-quality and durable business at a meaningful discount to our estimate of its intrinsic value after a series of near-term concerns hurt its share price. Taking a longer term view, the company’s business jet franchise should benefit from a multi-year investment program in new, differentiated products. Also, its free cash flow conversion is set to improve materially and the company is poised to benefit from a highly visible ramp up in revenue related to next generation nuclear-powered submarines. As these positives come into clearer view, we expect sentiment to improve, along with the company’s share price.”