We recently published a list of Goldman Sachs Defense Stocks: Top 12 Stock Picks. In this article, we will take a look at where Moog Inc. (NYSE:MOG-A) 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.
Moog Inc. (MOG-A): 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.
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Moog Inc. (NYSE:MOG-A) designs, manufactures, and integrates precision control components and systems for OEMs and end users in the aerospace, industrial, and defense markets.
On March 25, the company announced the shipment of Meteor satellite buses for national security space missions. This is a significant milestone for Moog Inc. (NYSE:MOG-A), which has expanded its footprint to the DoD’s programs. It also continues the company’s seven-decade-long commitment to protect warfighters and support those who explore the universe.
The Meteor is an ESPA Grande-class bus, featuring radiation-hardened space avionics, modular payload power, and mission-configurable flight software, making it ideal for dynamic space operations. This new bus builds on Moog Inc. (NYSE:MOG-A)’s earlier success of the Meteorite small satellite buses, which are currently supporting a national security mission on orbit.
In January, Moog Inc. (NYSE:MOG-A) was selected by Lockheed Martin to provide custom actuators for the PAC-3 MSE contract with the Army. The contract was valued at $100 million, making it one of the largest and most significant awards in the company’s defense division. The program is aimed at defending the country from inbound ballistic and cruise missiles, aircraft, and other advanced threats.
Moog Inc. (NYSE:MOG-A) is among the top defense picks from the Goldman Sachs stock portfolio, with the investment banking firm having a stake value of over $108 million in the company as of Q4 2024.
Overall, MOG-A ranks 11th 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 MOG-A but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.