August was a tough month for stock investors – the S&P 500 dropped 2% for the month. The ongoing trade tensions between the US and China, and President Trump’s mercurial approach to diplomacy, put a damper on stocks exposed to the Asian import-export trade. In the bond markets, the yield curve inverted – that is, the 10-year yield dipped below the 2-year yield, indicating a lack of investor confidence in the short-term markets, but more ominously the inversion is considered an accurate long-range recession predictor.The upshot was increased volatility. The S&P 500 had its second worst month this year, with half of August’s trading sessions seeing declines in the index. In response, classic defensive stocks – such as AT&T (T) and Procter & Gamble (PG) – have seen gains as investors sought safe havens. Here, we’ll look at three such havens: defense stocks that are showing resilience in the face of current market conditions, and are attracting positive notice from the Street’s top analysts. Northrop Grumman Corporation (NOC)Best known today for its line of military drones and the B-2 stealth bomber, Northrop Grumman has long been a mainstay of the US defense industry. It’s a quality business niche that has served the company well, and the most recent quarterly earnings bear that out. NOC reported a 9% positive surprise in EPS, showing $5.06 per share against the $4.64 expected, on $8.46 billion in quarterly earnings. Along with the strong earnings performance, the company pays out a regular dividend. While the yield is modest, the payment is high at $5.28 annually.After the earnings report came out, 5-star Credit Suisse analyst Robert Spingarn was duly impressed. He raised his price target on the stock by 5%, to $385 dollars, saying, “The company has powerfully disrupted the low-growth bear narrative with Q2 results.” NOC shares have gained since Spingarn reviewed the company, and his price target on the stock suggests a 5% upside from current levels.NOC’s share price gains were pushed along by an upgrade from Morgan Stanley’s Rajeev Lalwani, who moved his position from neutral to buy. He wrote, “NOC is well-positioned in the market. Its focus on high-end technology and other favorable factors make it the best long-cycle play.” While Lalwani declined to set a specific price target, his “long-cycle” comment indicates high confidence in the company.Northrop holds a Strong Buy from the analyst consensus, and a robust $364 share price. The stock's recent gains have pushed it right up to the $366 average price target, leaving only a small upside, the outlook remains bullish and current trends are positive. Honeywell International, Inc. (HON)Honeywell may not be a household name, but you have probably used some of their products. Among the company’s civilian-oriented products are such common appliances as thermostats and home security alarms. Honeywell’s aerospace segment is deeply involved in the defense industry, producing a wide array of component systems as well as several high-tech weapons and drones.All of this has provided returns for investors. In the July Q2 release, HON reported a modest EPS beat of 1%, showing $2.10 per share. Revenue just missed the expectation, due to several business spin-offs during the previous 12 months. The company’s organic business showed a 5% improvement. And in a move that keeps investors happy, HON continues to reliably pay out its 2% dividend. At the current trading levels, the annualized payment is $3.28 per share.John Eade, of Argus, sees strength in Honeywell’s position despite the revenue miss. He writes, “We expect momentum to continue as the company generates low double-digit earnings growth over the next 5 years. Honeywell stands to benefit from its diverse product lines, its strong presence in the commercial aerospace and commercial construction markets, as well as its mid-market product presence in China that is growing in spite of the country's infrastructure slowdown.” He gives HON shares a price target of $195, suggesting an upside potential of 19%.The analyst consensus on HON is a Strong Buy, based on 5 buys and 1 hold from the past three months. The stock is trading at $163, so the $187 average price target gives it a 14% upside. Note that even the low price target here of $177 is higher than the current share price. Boeing Company (BA)Boeing has been getting more than its share of news this year, and not all of it good. The company’s 737 MAX-8 airliner – the best-selling model of its best-selling commercial aircraft – remains grounded world-wide in the aftermath of two fatal air crashes. Boeing management failed to allay customer and government worries after the crashes, and while it reports that it has a fix for the airliner’s autopilot problem, it has yet to receive regulatory approval to make the upgrades.Even so, industry watchers see the company with a firm foundation. Its wide-body airliners remain in production, as do the F-15 and F-18 fighter programs. Boeing has committed to maintaining its high-paying dividend during these difficulties, rewarding investors for loyalty. That dividend, despite a modest yield of just 2.33%, pays out a high $8.22 per share annually.Boeing has shown strong recent gains in share price after Cowen’s 5-star analyst – and aerospace expert – Cai Rumohr reiterated his Buy rating on the stock. Rumohr notes that the company “has updated MCAS software and is developing software for the flight control microprocessor, and is also working in parallel with airlines and regulators on pilot workload issues.” He adds that the FAA could hold a certification flight for the 737 MAX as early as mid-October, which would speed up Boeing’s timeline on returning the airliners to regular service. Rumohr’s $460 price target on BA indicates a potential 29% upside.With all of the headwinds it has faced, Boeing’s analyst consensus remains a Moderate Buy. The stock has received 11 buy ratings in the last three months, compared to 5 holds. Its average price target is $425, which suggests a healthy 20% upside compared to the $353 current share price.Visit TipRanks' Trending Stocks page, to find out which stocks Wall Street's top analysts like today.

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