We recently published a list of Goldman Sachs Defense Stocks: Top 12 Stock Picks. In this article, we will take a look at where The Boeing Company (NYSE:BA) stands against other top defense stock picks from the Goldman Sachs Portfolio.
After a subdued start to the year, American defense stocks are beginning to see improved returns. Investors are buoyed by President Trump’s plans for a $1 trillion defense budget for fiscal 2026, adding to the momentum from last month’s unveiling of the F-47 and announcement to resurrect the country’s shipbuilding industry.
The sector has received another boost after market chatter that tariff negotiations to address trade imbalances could include commitments from foreign countries to buy weapons from the US. In a statement released on April 8, Vietnam’s prime minister asked for a 45-day delay in the imposition of tariffs and stated his country would buy more American goods, including weapons, to tackle the trade gap.
On April 11, Goldman analyst Noah Poponak adjusted his ratings and price targets for defense stocks, and the most notable adjustment was a prominent Navy shipbuilder receiving a double upgrade on the back of an executive order signed by Trump to revitalize the sector. Poponak expects the stock to benefit, with shipbuilding expected to be a high priority within the defense budget.
The firm is known for its expertise in stock recommendations, helping investors identify high-potential companies. GS boasts a vast network of analysts, covers a wide range of stocks. It also has a research team led by analysts and economists from around the world, offering insights on the economy and the broader market.
In a report released in March this year, Goldman Sachs Research projected a significant increase in defense spending by EU member nations. Military expenditure in the euro area accounted for 1.8% of the GDP in 2024, and is projected to rise to 2.4% by 2027. The firm’s analysts estimate the increased spending to positively impact GDP growth, with every €100 spent on defense to boost GDP by approximately €50.
Defense stocks have rallied in Europe this year, as regional capitals unlocked billions to supercharge their militaries. While recent tariffs have sparked a major plunge in shares over the past couple of weeks, this has been a year to remember for several European defense contractors, with significant returns so far in 2025.
With that said, let’s head over to the list of the top defense picks from the Goldman Sachs stock portfolio.
The Boeing Company (BA): One of the Top Defense Stock Picks from the Goldman Sachs Portfolio
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Methodology
For this article, we scanned Goldman Sachs’ 13F portfolio as of December 31, 2024. From there, we picked the top 12 defense stocks according to their stake value and ranked them in ascending order.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
The Boeing Company (NYSE:BA) is a leading aerospace company that manufactures commercial airplanes, space systems, and defense equipment for customers in over 150 countries. It is among the top defense picks from the Goldman Sachs stock portfolio, with the firm having holdings of nearly $497 million in the company.
On March 21, the US Air Force selected The Boeing Company (NYSE:BA) to design and build its next-generation fighter aircraft, the F-47, to replace the F-22 Raptor. The jet will have stealth and penetration capabilities that exceed those of the current fleet. The initial contract to proceed with the production is expected to cost approximately $20 billion.
The Boeing Company (NYSE:BA) recently shared a press release stating that the production of its Patriot Advanced Capability-3 (PAC-3) seekers reached an all-time high in 2024, with 500 deliveries during the year. The component enables advanced interceptors in the Patriot air defense system to identify and defeat threats like missiles and hostile aircraft. The 35,000-square-foot expansion of its Alabama factory in spring this year is expected to unlock further production capacity.
The company also received a $240 million contract late last month from the US Army Special Operations Aviation Command (USASOAC) to remanufacture five MH-47G Block II Chinook, with deliveries scheduled for 2027. This follows USASOAC’s 2024 award for four MH-47G Block II aircraft and has taken the total number of aircraft under the contract to 51. The Boeing Company (NYSE:BA) anticipates the entirety of the fleet to be delivered by 2030.
While financial challenges and recent tariffs continue to pressure the stock’s share price, most analysts remain bullish on The Boeing Company (NYSE:BA), considering its huge order backlog and believe the stock is bound to recover once the headwinds subside.
Overall, BA ranks 4th among the Goldman Sachs Defense Stocks: Top 12 Stock Picks. While we acknowledge the potential of defense companies, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than BA but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
