From Yahoo Finance: 2025-06-28 06:20:00

The defense industry is undergoing significant change due to evolving warfare techniques. Analysts predict a shift towards low-cost mass production, asymmetric weapons, and software-enabled capabilities. Three defense stocks – CACI International, Teledyne Technologies, and AeroVironment – are top picks for investment, with CACI being particularly highlighted for its financial performance and growth potential.

CACI International is a technology contracting firm with expertise in national security and defense. The company reported strong financial results for fiscal 3Q25, beating forecasts and demonstrating growth in revenue and earnings. With a high-quality backlog and strategic acquisitions, CACI is positioned for further growth in the defense industry, earning it a Buy rating and a price target of $576 from analyst Jonathan Siegmann.

Teledyne Technologies provides technology and services across various industries, including defense and aerospace. The company’s revenue for 1Q25 exceeded expectations, driven by its divisions in instrumentation, digital imaging, and aerospace & defense electronics. With a focus on specialized technology and high reliability products, Teledyne is well-positioned for growth, earning a Buy rating and a price target of $626 from Siegmann.

AeroVironment specializes in developing drones and unmanned vehicles for military applications. The company recently completed a merger with BlueHalo, expanding its portfolio and capabilities. Strong financial results for fiscal 4Q25 and the full year 2025 indicate growth and record revenue. Analysts are optimistic about AeroVironment’s position in the new defense tech space, with a Buy rating and a price target of $240 from Siegmann.

Read more: These 3 ‘Top Pick’ Defense Stocks Pack a Punch, Says Stifel