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Best Defense Stocks to Buy Now (2024)

Top defense stocks in 2024 ranked by overall Zen Score. See the best defense stocks to buy now, according to analyst forecasts for the aerospace & defense industry.

According to Zen Score, the 3 best defense stocks to buy right now are:

Virtra (NASDAQ:VTSI) is the top defense stock with a Zen Score of 60, which is 32 points higher than the defense industry average of 28. It passed 19 out of 33 due diligence checks and has strong fundamentals. Virtra has seen its stock return 38.3% over the past year, overperforming other defense stocks by 22 percentage points.

Virtra has an average 1 year price target of $17.50, an upside of 73.1% from Virtra's current stock price of $10.11.

Virtra stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 2 analysts covering Virtra, 100% have issued a Strong Buy rating, 0% have issued a Buy, 0% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Lockheed Martin (NYSE:LMT) is the second best defense stock with a Zen Score of 52, which is 24 points higher than the defense industry average of 28. It passed 19 out of 38 due diligence checks and has strong fundamentals. Lockheed Martin has seen its stock return 1.95% over the past year, underperforming other defense stocks by -14 percentage points.

Lockheed Martin has an average 1 year price target of $502.75, an upside of 7.84% from Lockheed Martin's current stock price of $466.20.

Lockheed Martin stock has a consensus Buy recommendation according to Wall Street analysts. Of the 8 analysts covering Lockheed Martin, 37.5% have issued a Strong Buy rating, 0% have issued a Buy, 62.5% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Innovative Solutions & Support (NASDAQ:ISSC) is the third best defense stock with a Zen Score of 49, which is 21 points higher than the defense industry average of 28. It passed 20 out of 38 due diligence checks and has strong fundamentals. Innovative Solutions & Support has seen its stock lose -24.68% over the past year, underperforming other defense stocks by -41 percentage points.

Out of 20 defense stocks that have issued dividends in the past year, the 3 defense stocks with the highest dividend yields are:

National Presto Industries (NYSE:NPK) has an annual dividend yield of 5.6%, which is 4 percentage points higher than the defense industry average of 1.54%. National Presto Industries's dividend payout is not stable, having dropped more than 10% two times in the last 10 years. National Presto Industries's dividend has shown consistent growth over the last 10 years.

National Presto Industries's dividend payout ratio of 99.3% indicates that its high dividend yield might not be sustainable for the long-term.

Park Aerospace (NYSE:PKE) has an annual dividend yield of 3.46%, which is 2 percentage points higher than the defense industry average of 1.54%. Park Aerospace's dividend payout is not stable, having dropped more than 10% three times in the last 10 years. Park Aerospace's dividend has shown consistent growth over the last 10 years.

Park Aerospace's dividend payout ratio of 319.1% indicates that its dividend yield might not be sustainable for the long-term.

Smith & Wesson Brands (NASDAQ:SWBI) has an annual dividend yield of 2.98%, which is 1 percentage points higher than the defense industry average of 1.54%.

Smith & Wesson Brands's dividend payout ratio of 80.7% indicates that its dividend yield is sustainable for the long-term.

Defense stocks were up 0.29% in the last day, and down -0.34% over the last week.

We couldn't find a catalyst for why defense stocks are up.

Based on WallStreetZen's Valuation Score, the 3 most undervalued defense stocks right now are:

Innovative Solutions & Support (NASDAQ:ISSC) is the most undervalued defense stock based on WallStreetZen's Valuation Score. Innovative Solutions & Support has a valuation score of 86, which is 67 points higher than the defense industry average of 19. It passed 6 out of 7 valuation due diligence checks.

Innovative Solutions & Support's stock has dropped -24.68% in the past year. It has underperformed other stocks in the defense industry by -41 percentage points.

Virtra (NASDAQ:VTSI) is the second most undervalued defense stock based on WallStreetZen's Valuation Score. Virtra has a valuation score of 71, which is 52 points higher than the defense industry average of 19. It passed 5 out of 7 valuation due diligence checks.

Virtra's stock has gained 38.3% in the past year. It has overperformed other stocks in the defense industry by 22 percentage points.

Cpi Aerostructures (NYSEMKT:CVU) is the third most undervalued defense stock based on WallStreetZen's Valuation Score. Cpi Aerostructures has a valuation score of 71, which is 52 points higher than the defense industry average of 19. It passed 5 out of 7 valuation due diligence checks.

Cpi Aerostructures's stock has dropped -25.72% in the past year. It has underperformed other stocks in the defense industry by -42 percentage points.