Goldman Sachs Defense Stocks: Top 5 Stock Picks

3. The Boeing Company (NYSE:BA)

Goldman Sachs’ Stake Value: $502,736,534

Number of Hedge Fund Holders: 57

The Boeing Company (NYSE:BA) designs, develops, manufactures, and supports commercial jetliners, military aircraft, satellites, missile defense, human space flight and launch systems, and services worldwide. The Boeing Company (NYSE:BA) operates through four segments – Commercial Airplanes, Defense, Space & Security, Global Services, and Boeing Capital. Securities filings for Q2 2023 reveal that Goldman Sachs held 2.38 million shares of The Boeing Company (NYSE:BA) worth $502.7 million. 

On August 31, The Boeing Company (NYSE:BA) was awarded a $173.61 million contract as part of an existing agreement to repair landing gear for the F/A-18 E/F aircraft. The project is slated for completion by August 2026, with the Naval Supply Systems Command Weapon Systems Support in Pennsylvania overseeing the contracting activity.

According to Insider Monkey’s second quarter database, 57 hedge funds were bullish on The Boeing Company (NYSE:BA), compared to 52 funds in the preceding quarter. Phill Gross and Robert Atchinson’s Adage Capital Management is a prominent stakeholder of the company, with 2 million shares worth $438.6 million. 

Jackson Square Partners made the following comment about The Boeing Company (NYSE:BA) in its Q3 2022 investor letter:

“For The Boeing Company (NYSE:BA)–in short, we believe the worst of Boeing’s idiosyncratic issues are behind it, the airframe duopoly remains as protected as ever, and at current prices (where we’ve been adding), the stock is trading around ~6x FCF on 2025E. Current airframe production is running materially below expected travel demand over the next 5-10 years, creating a structural supply/demand imbalance that we believe will drive a decade of strong growth in civil aerospace from here. In our 2Q’22 correspondence, we described the attributes of our ideal growth ballast and said we hoped to convert another in the coming months – we believe Boeing checks all those boxes.”