Top 5 Defense Contractors in 2021

3. General Dynamics Corporation (NYSE: GD)

Number of Hedge Fund Holders: 31

General Dynamics Corporation (NYSE: G.D.) has a $21.880 billion defense contract with the U.S. Department of Defense. In the year 1952, several companies merged and formed General Dynamics Corporation. The company developed the USS Nautilus, the world’s first nuclear-powered submarine. The company has over 100,000 employees and is working in almost every area of defense. The business divisions of the company are Marine Systems, Aerospace, Combat Systems, and other related technologies.

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