From Yahoo Finance: 2025-04-22 18:50:00

American defense stocks are rebounding, fueled by Trump’s proposed $1 trillion defense budget and recent industry developments. Vietnam’s prime minister’s commitment to buy more US weapons to address trade imbalances has further boosted the sector. Goldman analyst Noah Poponak raised ratings for defense stocks, particularly Navy shipbuilders, expecting growth in shipbuilding within the defense budget.

Goldman Sachs Research projects a rise in EU defense spending, estimating military expenditure in the euro area to increase from 1.8% to 2.4% of GDP by 2027. This surge in spending is expected to positively impact GDP growth, with every €100 spent on defense potentially boosting GDP by around €50.

TransDigm Group Incorporated (NYSE:TDG) ranks among the top 12 defense stock picks from the Goldman Sachs Portfolio with a stake value of $261,791,022. The company reported robust Q1 FY25 results, marked by a 29% increase in net income and 12% growth in net sales. Recent strategic acquisitions position TransDigm for long-term growth and revenue expansion.

TransDigm Group (NYSE:TDG) is a key player in the aerospace and defense industry, known for its significant pricing power. Wall Street analysts are bullish on the stock, forecasting a nearly 10% upside potential. Despite its potential, the article suggests that AI stocks may offer greater returns within a shorter timeframe, highlighting an undervalued AI stock with substantial upside potential.



Read more at Yahoo Finance: One of the Top Defense Stock Picks from the Goldman Sachs Portfolio