This article looks at the 10 Best Drone Stocks to Buy Right Now.
Greg King, CEO of the Rex Drone ETF, told Fox Business on November 21 that drones have proven their mettle and utility in both Ukraine and the Middle East, and noted the active shift from militaries towards spending on unmanned aerial vehicles compared to traditional weapons.
The NYSE Arca Defense Index has returned 35% year-to-date, as of the close on November 26, comfortably outpacing the S&P 500 Index, which has gained 16% during the period, with several drone makers contributing to the robust gains.
However, King was more excited about the commercial aspect of drones, with several corporations across industries now actively embracing the technology for services such as deliveries, inspection, and monitoring. He was quoted as saying the following:
“The military has been growing steadily for a while, but with the commercial applications, whether it’s monitoring crops or inspecting pipelines or Amazon, Walmart and UPS delivering to remote areas, it’s really hard to say which of those sort of sectors within the theme are going to grow the most. That’s why we have this broad exposure to that theme.”
King told Fox Business that he anticipates the drone industry to grow between 8% to 10% per annum to touch the $60 billion mark by 2030, as more sectors adopt autonomous systems.
With that said, let’s now discuss the best drone stocks to buy right now.
Pixabay/Public Domain
Our Methodology
We reviewed ETFs with drone theme exposure and our previous articles on the subject to build a pool of stocks, including both military and non-military drone companies that develop and explore solutions to enable drone technologies to operate more efficiently. The list was narrowed to include mid-cap or higher stocks with at least 15 hedge funds holding stakes as of Q3 2025. From there, we selected the top 10 stocks with the highest average upside potential in share price based on analysts’ price targets and ranked them in ascending order. All data is as of the close of business on Wednesday, November 26, 2025.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
10 Best Drone Stocks to Buy Right Now
10. RTX Corporation (NYSE:RTX)
Share Price Upside Potential: 11.89%
Number of Hedge Fund Holders: 76
RTX Corporation (NYSE:RTX) is among the 10 Best Drone Stocks to Buy Right Now. On November 21, the company announced that its joint venture with RAFAEL Advanced Defense Systems, Raytheon-Rafael Protection Systems (R2S), had received a $1.25 billion contract to provide Tamir surface-to-air missiles to Israel.
The deal will also include kits and testing equipment for the Iron Dome. In the press release, the defense contractor stated that the R2S established a new facility earlier in the month in East Camden, Arkansas, to increase the production of missiles for Israel’s Iron Dome Weapon System and the United States Marine Corps’ SkyHunter air defense system.
Jonathan Casey, the CEO at R2S, welcomed the venture’s first production contract. He was quoted as saying the following:
“This is the first production contract for the R2S joint venture and a major milestone for both Raytheon and Rafael. The new Camden site is the first all-up-round production facility in the U.S. to manufacture Tamir and SkyHunter missiles.”
In October, RTX Corporation (NYSE:RTX) reported strong third-quarter 2025 results, beating estimates for both revenue and earnings. The company also raised its full-year revenue and profit guidance, citing growing demand for its missiles and aftermarket services.
Several analysts lifted their price targets for the company following the earnings call. As of the close of business on November 26, over 60% of Wall Street analysts with recommendations on RTX have a Buy or higher rating on the stock, with a one-year share price target of $193.79, representing an upside potential of 11.89%.
RTX Corporation (NYSE:RTX) is a giant in the global aerospace and defense industry, providing systems and services to commercial, military, and government clients. It operates through three main businesses: Collins Aerospace, Pratt & Whitney, and Raytheon.
9. Lockheed Martin Corporation (NYSE:LMT)
Share Price Upside Potential: 16.30%
Number of Hedge Fund Holders: 68
Lockheed Martin Corporation (NYSE:LMT) is among the 10 Best Drone Stocks to Buy Right Now. On November 18, the company announced a strategic collaboration with German weapon manufacturer Diehl Defence to expand the integrated air and missile defense (IAMD) framework to allied nations.
The two companies will combine their capabilities and work on the integration of IRIS-T with the Aegis Weapon System and the MK41 launcher, which would mark the first instance of a European missile’s incorporation into the system.
Lockheed Martin Corporation (NYSE:LMT) has partnered with German firms for over half a century and has partnered on various projects with Diehl Defence in the past.
The MoU builds on an agreement signed between the two companies in October this year for the potential supply chain expansion for missiles in the Patriot Advanced Capability-3 (PAC-3) system.
Diehl’s CEO Helmut Rauch welcomed the agreement, while saying that the collaboration would benefit navies worldwide by equipping their surface combat vessels with advanced air defense systems.
Lockheed Martin Corporation (NYSE:LMT) is one of the largest defense contractors in the world. It specializes in the research, design, and development of advanced technology systems, products, and services.
8. Northrop Grumman Corporation (NYSE:NOC)
Share Price Upside Potential: 17.65%
Number of Hedge Fund Holders: 59
Northrop Grumman Corporation (NYSE:NOC) is among the 10 Best Drone Stocks to Buy Right Now. On November 18, Matthew Akers, an analyst at BNP Paribas Exane, initiated coverage of Northrop Grumman Corporation (NYSE:NOC) on a bullish note, assigning an Outperform rating and a price target of $710.
Separately, during an interview with Reuters last week, the company’s head of global business development, Steve O’Bryan, said that he expects continued growth in Europe even after Russia and Ukraine reach a ceasefire.
While he did not provide specific figures, O’Bryan anticipates that countries in the region will restore their depleting arsenal amid a realization that current levels of stockpile were insufficient for a similar conflict in the future. He further said that the expansion will be driven by partnerships, without requiring the company to increase its local presence.
Northrop Grumman Corporation (NYSE:NOC) has a workforce of around 2,200 in Europe, representing just over 2% of its global staff. It is collaborating with Rheinmetall on the F-35 fuselage and earlier this month announced signing an agreement with MBDA in Germany to strengthen Germany’s air and missile defense capabilities.
During his talk, O’Bryan also mentioned encouraging prospects from the Middle East and Asia-Pacific region amid heightened tensions, while adding that the pause in hostilities in Gaza had so far not affected demand for weapons, and that a similar trend is expected in Europe.
Northrop Grumman Corporation (NYSE:NOC) is one of the largest defense contractors in the world. It is engaged in the design, development, integration, and maintenance of advanced systems across aeronautics, space, defense electronics, and mission solutions.
7. L3Harris Technologies, Inc. (NYSE:LHX)
Share Price Upside Potential: 21.01%
Number of Hedge Fund Holders: 59
L3Harris Technologies, Inc. (NYSE:LHX) is among the 10 Best Drone Stocks to Buy Right Now. On November 18, the company announced that it had signed a memorandum of understanding (MoU) with EDGE Group to expand their partnership in the United Arab Emirates.
The two companies will collaborate on research and development related to AI and autonomy and deliver solutions that enhance the UAE’s defense capabilities. The partnership will also aid in expanding L3Harris’ presence in the Middle East, which has been serving clients in the UAE for the past 35 years.
Christopher Kubasik, Chairman and CEO of L3Harris Technologies, Inc. (NYSE:LHX) was quoted as saying the following in a press release on the agreement:
“Partnerships are a hallmark of our Trusted Disruptor strategy, and EDGE is the kind of disruptive innovator we’re seeking to collaborate with. Together, we’ll accelerate the development and delivery of the advanced solutions the UAE needs to confront emerging threats.”
In other news, on the same day, L3Harris Technologies, Inc. (NYSE:LHX) broke ground on a new solid rocket motor production facility in Arkansas. The company plans on investing $400 million in the campus, which is being seen as a major expansion in the U.S., as demand for solid rocket motors rises due to ongoing conflicts in Ukraine and the Middle East.
L3Harris Technologies, Inc. (NYSE:LHX) provides end-to-end technology solutions connecting the air, land, space, sea, and cyber domains in national security.
6. Honeywell International Inc. (NASDAQ:HON)
Share Price Upside Potential: 27.20%
Number of Hedge Fund Holders: 76
Honeywell International Inc. (NASDAQ:HON) is among the 10 Best Drone Stocks to Buy Right Now. On November 18, BofA downgraded the stock’s rating to Underperform from Buy and slashed its price target from $265 to $205.
BofA analysts, led by Andrew Obin, noted the company’s ongoing portfolio reshuffle, with plans to separate the Aerospace and Automation businesses by mid-2026. BofA said that while such a ‘simplification’ would generally be beneficial for any firm, it sees a ‘challenging’ path ahead.
On October 30, Honeywell International Inc. (NASDAQ:HON) announced that the spin-off of its Advanced Materials business had been completed, and a week later, it appointed Jim Currier as President and CEO of Honeywell Aerospace, which would become an independent company by the second half of next year.
Neither announcement was well received by investors, according to BofA analysts, who added that the expectation of insignificant EPS growth next year would also pressure shares.
In February this year, the industrial conglomerate announced it would separate Automation and Aerospace Technologies, and spin off Advanced Materials, to create three separate publicly listed companies by the second half of 2026.
Despite BofA’s downgrade, the stock has a one-year average share price target of $241.67 as of the close on November 26, representing an upside potential of 27.20%. Moreover, more than half of the 23 Wall Street analysts covering Honeywell International Inc. (NASDAQ:HON) have a Buy rating or higher.
Honeywell International Inc. (NASDAQ:HON) helps organizations address their most complex challenges in aviation, automation, and energy transition. The stock is down 11% year-to-date, as of the close on November 26.
5. The Boeing Company (NYSE:BA)
Share Price Upside Potential: 31.07%
Number of Hedge Fund Holders: 106
The Boeing Company (NYSE:BA) is among the 10 Best Drone Stocks to Buy Right Now. On November 26, the company announced that it had secured a contract worth $4.7 billion from the U.S. Army to manufacture AH-64E Apache attack helicopters for international clients, of which 96 units will be produced for Poland.
This is the largest contract in terms of volume for the aircraft outside of the United States, with deliveries scheduled to take place in 2028. According to a press release by Boeing, the Polish military has already begun training pilots and maintainers for the aircraft.
Last year, the Polish Ministry of National Defense signed an agreement with the company, which will see the local industry play an important role in the fleet’s maintenance and support, while Boeing will be responsible for developing training programs.
Christina Upah, Vice President of The Boeing Company (NYSE:BA)’s Attack Helicopter Programs, stated the following on the award:
“This important agreement allows us to begin building one of the largest and most formidable Apache fleets that the world has ever seen. Working closely with the Polish Armed Forces, we’re focused on disciplined execution to help enhance Poland’s defense capabilities and keep up with the strong demand for the most advanced attack helicopter.”
The helicopter award follows a $2.47 billion contract by the United States Air Force earlier in the week for 15 additional KC-46A Tankers.
The Boeing Company (NYSE:BA) is a leading aerospace company that manufactures commercial airplanes, space systems, and defense equipment for customers in over 150 countries.
4. Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS)
Share Price Upside Potential: 31.71%
Number of Hedge Fund Holders: 36
Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) is among the 10 Best Drone Stocks to Buy Right Now. On November 18, BNP Paribas Exane initiated coverage of the stock with a Neutral rating and a share price target of $80.
Based on the ratings and price targets of 15 analysts as of the close of business on November 26, the stock has strong positive sentiment, with a one-year average share price target of $99.80, representing an upside potential of 31.71%.
BNP Paribas Exane’s initiation of coverage follows BTIG’s price-target adjustment earlier in the month, when the firm lifted its target to $95 from $80 while keeping a Buy rating on the stock.
BTIG noted Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS)’s promising investments in tactical drones and hypersonics, which have resulted in an encouraging response from customers. The analyst also added that the company’s recent contract wins were owed to an increased focus on new opportunities.
In other news, on November 14, Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) announced that it would acquire Orbit Technologies Ltd. for $356.3 million, with the transaction to be fully funded through cash.
The buyout of the Israel-based firm would add to the drone maker’s capabilities, equipping it with vital satellite-based communications for unmanned, mobile, and military systems.
Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) develops and fields transformative and affordable products and platforms for national security needs. The stock has surged 187% year-to-date as of the close on November 26.
3. Ondas Holdings Inc. (NASDAQ:ONDS)
Share Price Upside Potential: 33.50%
Number of Hedge Fund Holders: 20
Ondas Holdings Inc. (NASDAQ:ONDS) is among the 10 Best Drone Stocks to Buy Right Now. On November 26, Lake Street analyst Max Michaelis lifted his price target on the stock to $10 from $9, while maintaining a Buy rating.
Lake Street’s update follows the company’s announcement a day prior to acquire Roboteam in an $80 million agreement. The analyst anticipates Ondas Holdings Inc. (NASDAQ:ONDS) to continue its investments over the next year, with more such deals potentially in the offing.
The move is expected to bolster Ondas Holdings Inc. (NASDAQ:ONDS)’s position as an autonomy leader across domains by combining its autonomous aerial systems with Roboteam’s expertise in ground robotics.
For context, the Israeli firm’s products and services are used by around 30 militaries, which is expected to benefit Ondas through continued sales opportunities and the potential to be considered for future defense programs.
Moreover, Ondas Holdings Inc. (NASDAQ:ONDS) projects to generate between $3-4 million in revenue from Roboteam during the fourth quarter of fiscal 2025, with the figure projected at around $30 million for 2026. As a result, Lake Street believes the company is well-positioned to achieve its target of $110 million in revenue in 2026.
Based on the ratings and price targets of 7 Wall Street analysts, the stock has a consensus Buy rating with a one-year average share price target of $11, representing an upside potential of 33.50% from Wednesday’s close.
Ondas Holdings Inc. (NASDAQ:ONDS) provides private wireless solutions and autonomous aerial and ground robot intelligence. The stock has soared in 2025, returning 222% year-to-date as of the close on November 26.
2. AeroVironment, Inc. (NASDAQ:AVAV)
Share Price Upside Potential: 44.70%
Number of Hedge Fund Holders: 37
AeroVironment, Inc. (NASDAQ:AVAV) is among the 10 Best Drone Stocks to Buy Right Now. As of the close of business on November 26, Wall Street analysts have a consensus Buy rating on the stock. AeroVironment, Inc. (NASDAQ:AVAV) has a one-year average share price target of $404, representing a 44.70% upside potential from Wednesday’s close.
On November 24, BTIG reiterated its Buy rating on the stock with a price target of $415.
BTIG’s update is a reaffirmation of its earlier adjustment to AVAV in early October, when it raised the price target to $415 from $300 while maintaining a Buy rating on the stock. The revision followed the research firm’s analyst, Andre Madrid, meeting with AeroVironment, Inc. (NASDAQ:AVAV)’s management during a site visit.
Madrid noted that the company was well-positioned to gain given the Trump administration’s focus on counter-drone technology, cybersecurity, and space. BTIG also highlighted the potential of several product lines at AeroVironment, Inc. (NASDAQ:AVAV), including BADGER and Switchblade, to generate well over a billion dollars in business.
In other related news, Piper Sandler initiated coverage of the stock with an Overweight rating and set a $391 price target.
AeroVironment, Inc. (NASDAQ:AVAV) designs and manufactures unmanned aerial vehicles, ground robot systems, and loitering munition systems. The stock has returned over 81% so far this year.
1. Archer Aviation Inc. (NYSE:ACHR)
Share Price Upside Potential: 56.07%
Number of Hedge Fund Holders: 37
Archer Aviation Inc. (NYSE:ACHR) is among the 10 Best Drone Stocks to Buy Right Now. As of the close of business on November 26, the stock has a consensus Buy rating based on 8 Wall Street analyst recommendations. Archer Aviation Inc. (NYSE:ACHR) has a one-year average share price target of $11.69, representing an upside potential of 56.07%.
On November 21, Canaccord Genuity analyst Austin Moeller raised his price target on the stock to $13 from $12, while maintaining a Buy rating.
Canaccord’s update follows the company’s announcement on the sidelines of the recent Dubai Airshow (November 15-19) to provide electric powertrain technology to UAE-based EDGE Group and Anduril for the Omen Autonomous Air Vehicle.
This is the first time this technology, used on Archer’s Midnight electric vertical take-off and landing (eVTOL) aircraft, is being provided to a third party, which Moeller believes will unlock a new window of revenue growth for the company ahead.
During the four-day event, the American aerospace innovator also signed an agreement with The Helicopter Company and Red Sea Global to build, test, and deploy the eVTOL aircraft in Saudi Arabia.
These deals follow several recent contracts secured by Archer Aviation Inc. (NYSE:ACHR) with international clients, including one in October with South Korea for eVTOL air taxis.
Archer Aviation Inc. (NYSE:ACHR) is an aerospace company engaged in the development of innovative technologies to power the future of aviation.
While we acknowledge the potential of ACHR to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than ACHR and that has 100x upside potential, check out our report about the cheapest AI stock.
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