Ducommun (DCO) Benefits as Defense Spending and Commercial Aerospace Rebound

Diamond Hill Capital's Q2 2026 investor letter revealed Ducommun Incorporated (NYSE:DCO) as a key driver of the fund's performance. The aerospace and defense manufacturer's shares surged 104% year-to-date, outperforming major industry names. In Q2 2026, Ducommun Incorporated's stock climbed to $165.60 per share, up 81.24% over the past 52 weeks.

The company's performance was bolstered by a 23% increase in missile revenue, driven by Department of Defense contracts for substantial production increases, and the return of commercial aerospace growth after a period of low activity. Despite being on the list of the 40 Most Popular Stocks Among Hedge Funds, Ducommun Incorporated was not held by 31 hedge fund portfolios at the end of the second quarter, indicating it may be undervalued.