Here Is What You Need To Know Before Investing In General Dynamics Corporation (GD)

General Dynamics Corporation (NYSE:GD) is among the 12 Best Defense Stocks to Buy Right Now, based on hedge fund sentiment. It is a leading global aerospace and defense company, operating through its Aerospace, Marine Systems, Combat Systems, and Technologies segments.

According to Insider Monkey’s database for Q2 2025, 61 hedge funds held a stake in the company, up from 46 at the end of the first quarter.

The stock has returned 23% year-to-date as of the close of business on September 19, amid continued investor interest due to the company’s significance in the defense sector, strong financials, and a healthy backlog of orders.

General Dynamics Corporation (NYSE:GD) is also recognized for its solid dividend policy, as it has been growing its payouts for 28 successive years. You can read more on this in 15 Best Performing Dividend Stocks So Far in 2025.

Wall Street analysts also maintain a bullish outlook for General Dynamics Corporation (NYSE:GD), with a consensus Buy rating and an average share price upside potential of 5%.

While we acknowledge the potential of GD as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.