One of the top defense stock picks from Goldman Sachs portfolio
Recently I published the list Goldman Sachs Defense Stocks: Top 12 Stock Picks. In this article, we’ll see where Textron Inc. (NYSE: TXT) will face other top defensive stock picks from the Goldman Sachs portfolio.
After a curtailed start to the year, American defence stocks are beginning to begin improving returns. Investors are backed by President Trump’s plan for the $1 trillion defense budget for fiscal year 2026, and gaining momentum after the announcement of the F-47 last month and the country’s announcement to revive the country’s shipbuilding industry.
The sector has received another boost after market chatter that tariff negotiations to address trade imbalances could include foreign commitments to buy arms from the US. In a statement released on April 8, the Vietnamese prime minister called for a 45-day delay in the imposition of tariffs and said his country would purchase more American goods, including arms, to tackle the trade gap.
On April 11, Goldman analyst Noah Poponak adjusted his defense stock valuation and price targets. The most notable adjustments were prominent naval shipbuilders who received a double upgrade on the back of an executive order signed by Trump to stimulate the sector. Poponak expects the stock to make a profit, and shipbuilding is expected to be a high priority within the defense budget.
The company is known for its expertise in equity recommendations and helps investors identify high potential companies. GS boasts a vast network of analysts and covers a wide range of stocks. It also has a research team led by analysts and economists from around the world, providing insight into the economy and the broader market.
In a report released in March this year, Goldman Sachs Research predicted a significant increase in defence spending by EU members. Military spending in the Euro region accounts for 1.8% of GDP in 2024 and is projected to rise to 2.4% by 2027. The company’s analysts estimated an increase in spending to have a positive impact on GDP growth, with 100 euros increasing GDP by about 50 euros in defense.
Defence stocks are gathering in Europe this year as the regional capital unlocked billions to overcharge its troops. Over the past few weeks, recent tariffs have caused a major invasion in stocks, which has been one year in 2025 to remember European defense contractors with big returns.
That being said, go to our list of top defense picks from Goldman Sachs’ stock portfolio.
Textron Inc. (TXT): One of the top defense stock picks from the Goldman Sachs portfolio
Military cargo planes landing at their destinations show the strength of their defense divisions.
In this article, we scanned Goldman Sachs’ 13th floor portfolio as of December 31, 2024. From there, we selected the top 12 defense stocks according to their interests and ranked them in ascending order.
Why are hedge funds interested in the stocks they accumulate? The reason is simple. Our research shows that mimic the top stock picks of the best hedge funds can outperform the market. Quarterly Newsletter’s strategy was to select 14 small and large caps per quarter, returning 373.4% since May 2014, surpassing the benchmark by 218 percentage points (For more information, please see here).
Interest Value as of Q4 2024: $85,886,997
Textron Inc. (NYSE: TXT) manufactures consumer products in several industries through six business segments: Bell, Textron Airlines, Textron IVISATION, Textron Systems, Industry and Finance. This is one of the top defensive picks from Goldman Sachs’ equity portfolio.
On April 8, Textron Inc. (NYSE: TXT) announced that Textron Systems will be awarded a three-year, $100 million contract from the Navy Sea Systems Command (NAVSEA) to carry out payload integration and software support activities for Mining Measures (MCM) Unmanned Water Vehicles (USVs). Under the agreement, we will also be responsible for testing and demonstration work on potential future mission systems.
Textron Inc. (NYSE: TXT) is an important player in the American defense industry. Last November, DOD awarded Textron Air a $277 million contract to produce 26 T-54A trainer aircraft for the Navy, Marines and Coast Guard, earning its estimated completion date for September 2026.
The company is also working on FTUAS Option 3 and US Army Option 4 Awards. Under the agreement awarded in May 2024, Textron Systems will complete flight and MOSA demonstrations and offer the Aerosonde MK. 4.8 Hybrid Quad Misal Aircraft System to the Army for testing and evaluation.
However, Textron Inc. (NYSE: TXT) stock has declined 19% over the past three months after a significant decline in revenue for the fourth quarter of fiscal year 2024. The company is scheduled to report its first quarter results on April 24th.
Overall, TXT 12th place Among Goldman Sachs Defense Stocks: Top 12 Stock Picks. We acknowledge the potential of defense companies, but our belief lies in the belief that AI stocks offer higher returns and hold a greater commitment to doing it within a shorter time frame. There have been AI stocks that have risen since the beginning of 2025, and the popular AI stocks have lost around 25%. If you’re looking for AI stocks that are more promising than TXT but are trading below 5 times the revenue, check out our report on this Cheapest AI stocks.
