This article looks at the 10 Best Military Drone Stocks to Buy Right Now.
Drones and loitering munitions have been a prominent feature of conflicts this decade. Having proven their mettle in the Russia-Ukraine war, these have filled the skies during the ongoing tensions in the Middle East involving Iran, Israel, the United States, and Gulf states.
Militaries across the world have been actively adopting the technology, which is not only cost-effective to deploy but also reduces dependence on ground troops and is capable of striking enemy targets with pinpoint accuracy.
In February this year, Oppenheimer predicted that the total addressable market for drones would surpass $400 billion over the next decade. The firm noted the increase in global military spending and identified drones as a major driver of growth.
At the same time, much work is going into tackling the rapidly emerging threat from drones. This new kind of warfare has forced defense firms to ramp up work on measures to counter drone strikes.
Several Gulf states have sought to leverage Ukraine’s drone defense expertise in response to a series of attacks launched by Iran since the advent of the war. Earlier this month, Reuters reported that certain GCC countries were eyeing a Ukrainian-made drone interceptor as a cheaper alternative to defend against attacks compared to the U.S.-made missiles.
In other news, Bloomberg reported on Monday about the U.S. military’s plans to enter into a long-term agreement with a leading defense contractor to ensure a stable supply of drone interceptors, with recent wars demonstrating these as a cheap counter to the threat.
With that said, let’s now shift focus and see some of the best military drone stocks to buy right now.
Pixabay/Public Domain
Methodology
We reviewed stocks in ETFs with exposure to military drones, as well as our previous articles on the subject. Both pure-play military drone makers and companies with drone programs were included in our pool. From there, we selected the 10 stocks with the highest number of hedge fund investors, based on Insider Monkey’s database of over 1,000 prominent hedge funds as of Q4 2025. Where stocks were tied on hedge fund sentiment, we used a higher market cap as a tie-breaker between them.
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 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).
10 Best Military Drone Stocks to Buy Right Now:
10. Ondas Inc. (NASDAQ:ONDS)
Number of Hedge Fund Holders: 29
Ondas Inc. (NASDAQ:ONDS) is among the 10 Best Military Drone Stocks to Buy Right Now. On April 13, the company announced it had received a $68 million order for heavy engineering vehicles under the strategic military procurement program.k
This is an initial order that is part of the multi-year $140 million program awarded to the company’s subsidiary, INDO Earth Moving Ltd. Deliveries are anticipated to begin during the fourth quarter of 2026. Additional orders are expected alongside long-term maintenance and support, creating a significant revenue opportunity for Ondas.
On the other hand, the company continues to be an important player in the drone market. Earlier this month, Ondas Inc.’s subsidiary, Sentrycs, won several contract awards worth millions of dollars to support airspace security during the 2026 FIFA World Cup. As part of the agreements, its counter-drone technology will be deployed across most venues for the tournament.
In other news, last month the company announced a joint venture with Heidelberger called ONBERG to advance the drone defense industry in Europe through the delivery of autonomous defense systems. The venture will integrate Ondas’ expertise in counter-drone, Intelligence, Surveillance and Reconnaissance (ISR), and unmanned security technologies with Heidelberger’s engineering prowess.
Ondas Holdings Inc. provides private wireless solutions and autonomous aerial and ground robot intelligence for the defense, security, and industrial markets.
9. AeroVironment, Inc. (NASDAQ:AVAV)
Number of Hedge Fund Holders: 40
AeroVironment, Inc. (NASDAQ:AVAV) is among the 10 Best Military Drone Stocks to Buy Right Now. On April 13, the company announced the appointment of Sean T. Woodward as Executive Vice President and Chief Financial Officer in place of Kevin McDonnell, who is stepping down from his position. He will assume charge on May 1, 2026.
Woodward joined the firm in 2010 and has served in various roles, including most recently as CFO of the Autonomous Systems segment. He has over two decades of financial leadership experience in defense technology and has previously worked at General Dynamics and Honeywell Aerospace.
In other recent news, AeroVironment, Inc. last week secured a $25 million contract for a period of three years from the U.S. Air Force to advance certain human health and performance technologies that had mainly been under mid-stage development from research to operational use.
Earlier in the month, the U.S. Navy selected AeroVironment, Inc. to provide ISR services in aid of naval missions as part of a broader initiative to enhance ISR capabilities. The move will see the company competing for delivery orders, using its JUMP 20-X uncrewed aircraft system, along with other industry players.
AeroVironment, Inc. designs and manufactures unmanned aerial vehicles, ground robot systems, and loitering munition systems.
8. Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS)
Number of Hedge Fund Holders: 41
Kratos Defense & Security Solutions, Inc. is among the 10 Best Military Drone Stocks to Buy Right Now. On April 8, the company announced that it had secured a $446.8 million contract from the U.S. Space Force’s Space Systems Command for a missile warning system, subject to the exercise of all options.
According to the drone technology firm’s press release, it will be the primary contractor for the Ground Management and Integration (GMI) agreement on the Resilient Missile Warning and Tracking (MWT) program.
The program is a vital initiative of the Space Force to build and sustain the ground infrastructure needed by the MWT satellites to operate in medium earth orbit. The GMI agreement will aid in the development of an integrated ground architecture to manage the MWT’s multi-orbit satellite constellation.
In other news, on April 6, Jefferies analyst Sheila Kahyaoglu upgraded Kratos Defense & Security Solutions, Inc. to Buy from Hold with a price target of $85. According to a report on Barron’s, the firm has forecast a 28% growth in sales in 2026 and 20% in 2027, boosted to an extent by an increase in production of Valkyrie drones.
Kratos Defense & Security Solutions, Inc. is a technology company focused on the development of advanced products and systems for defense, national security, and commercial markets.
7. Textron Inc. (NYSE:TXT)
Number of Hedge Fund Holders: 44
Textron Inc. (NYSE:TXT) is among the 10 Best Military Drone Stocks to Buy Right Now. As of the close of business on April 16, consensus holds a cautious view on the stock with an average share price upside potential of 8%.
Recent updates include Jefferies analyst Sheila Kahyaoglu trimming the stock’s price target to $110 from $115 on April 7, while maintaining a Buy rating.
According to a report from TipRanks, the adjustment was part of a first-quarter earnings preview. Jefferies anticipates the company’s EPS for the quarter to come in at $1.24 and miss estimates by six cents due to a weaker performance by Textron’s Bell and Industrials segments.
On April 2, Citigroup lifted its price target on Textron Inc. to $99 from $97 and reiterated a Neutral rating as part of the firm’s Q1 preview for aerospace and defense stocks. A day earlier, Wells Fargo initiated coverage on the stock with an Equal-Weight rating and announced a share price target of $92.
In other news, the company said on Monday that its Textron Aviation Defense business had received a five-year contract from the U.S. government valued at over $150 million to support the sustainment of more than 700 T-6 Texan II aircraft for the Air Force, Navy, and Army.
Textron Inc. manufactures products for consumers across several industries, through its six business segments: Bell, Textron Aviation, Textron eAviation, Textron Systems, Industrial, and Finance.
6. L3Harris Technologies, Inc. (NYSE:LHX)
Number of Hedge Fund Holders: 48
L3Harris Technologies, Inc. (NYSE:LHX) is among the 10 Best Military Drone Stocks to Buy Right Now. On Monday, the company announced that it had received a seven-year contract worth around $465 million from the U.S. Army under the Binocular Night Observation Device (BiNOD) program.
The defense contractor is one of the companies chosen to support the program. Under the agreement, the company will supply its NOVA night-vision goggle system to the Army.
The binocular device is placed on a helmet, which helps in enhancing the capabilities of troops through continuous situational awareness. NOVA is built using L3Harris Technologies, Inc.’s image intensifier technology.
In other news, this week the company said that it had successfully demonstrated an autonomous electronic warfare capability during a U.S. Army experiment. The test featured the deployment of its Deceptor electronic warfare payload on several uncrewed aerial systems.
According to the press release, the system was able to detect and identify the location of radio frequency threats and use data from various sensors to execute jamming operations to counteract those threats in real time.
L3Harris Technologies, Inc. provides advanced national security solutions in the air, land, space, sea, and cyber domains. It operates through four segments: Communication Systems, Integrated Mission Systems, Space & Airborne Systems, and Aerojet Rocketdyne.
5. Lockheed Martin Corporation (NYSE:LMT)
Number of Hedge Fund Holders: 59
Lockheed Martin Corporation (NYSE:LMT) is among the 10 Best Military Drone Stocks to Buy Right Now. On April 14, the company said it had secured a $1.9 billion contract from the Pentagon to continue the C-130J Maintenance and Aircrew Training System program.
Source: Ondas Holdings Inc. Press Release
According to the defense contractor’s press release, this is a sole-source, IDIQ agreement that will run for a period of ten years. The deal will help ensure the uninterrupted provision of training devices and support for aircrews and maintenance staff of the military transport aircraft.
In other news, Lockheed Martin Corporation continues to remain on analysts’ radar and sports a Hold rating with an average share price upside potential of 12% as of the close of business on April 16.
On April 7, Jefferies lifted its price target on the stock to $640 from $630 and maintained a Hold rating. In a research note to investors, the analyst said that she expects first-quarter revenue to be flat at $18 billion and miss the consensus of $18.4 billion, with EPS also likely to fall below estimates by 2%. The firm further added that the company is likely to keep its current guidance for 2026 intact.
Lockheed Martin Corporation is one of the largest defense contractors in the world. It is famed for manufacturing notable fighter jets, including the F-35. The company also delivers advanced autonomous solutions to the US military to meet the needs of its most demanding missions.
4. Northrop Grumman Corporation (NYSE:NOC)
Number of Hedge Fund Holders: 62
Northrop Grumman Corporation (NYSE:NOC) is among the 10 Best Military Drone Stocks to Buy Right Now. It is the maker of the MQ-4C Triton, which is considered one of the world’s most advanced uncrewed maritime ISR and targeting aircraft.
The high-altitude unmanned aerial vehicle is in use by the U.S. Navy and the Royal Australian Air Force and helps perform a wide range of operations, such as maritime patrol, search and rescue missions, and intercepting electronic signals and communications. The highly sophisticated drone has been actively used by the U.S. in the ongoing war against Iran as well.
Northrop Grumman Corporation’s prowess in autonomous systems is not just limited to the MQ-4C Triton. Earlier this year, in January, the company was chosen by the Marine Corps to develop the Collaborative Combat Aircraft with Kratos’ Valkyrie uncrewed aerial system.
In other news, the stock continues to remain on analysts’ radar and currently has a Moderate Buy rating with an upside potential of 13% as of the close on April 16. Recent updates include Jefferies on April 9, lifting its price target on NOC to $710 from $690 and maintaining a Hold rating.
Northrop Grumman Corporation is one of the world’s largest defense contractors. It is engaged in the design, development, integration, and maintenance of advanced systems across aeronautics, space, defense electronics, and mission solutions.
3. Honeywell International Inc. (NASDAQ:HON)
Number of Hedge Fund Holders: 79
Honeywell International Inc. (NASDAQ:HON) is among the 10 Best Military Drone Stocks to Buy Right Now. On March 31, the company announced that it had partnered with Odys Aviation to deliver a counter-unmanned aerial system.
The initiative is expected to strengthen domestic aviation leadership in the United States through the deployment of home-built drone systems to protect strategic assets and vital infrastructure from the rapidly emerging drone threats.
The collaboration comes after more than a year of joint development and integration to ensure compatibility between Honeywell Aerospace’s SAMURAI platform and Odys Aviation’s Laila UAV.
According to Honeywell International Inc.’s press release, the SAMURAI-Laila system comes up with an airborne defense layer between sensors on the ground and missile defense systems, which will ensure increased coverage and also cut dependence on kinetic defenses.
In related news, Honeywell signed a Memorandum of Understanding with LIG Nex1 in February to explore future collaboration on building solutions for the unmanned aerial vehicle market and other defense technologies.
Honeywell International Inc. is an integrated operating company serving a range of industries by delivering actionable solutions to address complex challenges in aviation, automation, and process technology.
2. RTX Corporation (NYSE:RTX)
Number of Hedge Fund Holders: 79
RTX Corporation (NYSE:RTX) is among the 10 Best Military Drone Stocks to Buy Right Now. On April 13, Jefferies analyst Sheila Kahyaoglu trimmed the price target on the stock to $210 from $225, while reiterating a Hold rating.
According to TipRanks, the firm said it had revised estimates for the companies in the aerospace and defense sector as part of its first-quarter earnings review.
As of the close of business on April 16, the stock is a Moderate Buy with an average share price upside potential of 15%.
In other news, RTX Corporation on Monday said it had successfully tested a mid-wave infrared (MWIR) camera that captures rapid motion pictures in real time while reducing processing and power demands. The capability is expected to improve battlefield awareness and offer better drone and aircraft surveillance.
The company is also a major player in counter-drone technology. Bloomberg reported this week that the American military was looking to sign a long-term deal with RTX for Coyote drone interceptors in its quest to ensure a steady supply, given the ongoing geopolitical conflicts.
RTX Corporation 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.
1. The Boeing Company (NYSE:BA)
Number of Hedge Fund Holders: 114
The Boeing Company (NYSE:BA) is among the 10 Best Military Drone Stocks to Buy Right Now. On Thursday, the company said that it was working alongside its unit Millennium Space Systems to increase space production capacity and launch a new satellite platform amid rising demand.
The effort aims to support government and commercial clients through quicker and more flexible mission delivery. The aerospace firm is aiming for 26 satellite deliveries this year, up from 11 in 2025.
The initiative includes a new satellite platform called Resolute, which will provide improved speed and flexibility compared to larger satellites and is built for missions that need more capabilities than a typical small satellite can offer, The Boeing Company said in a press release.
Earlier on April 15, the company said that it had received a $324 million contract from the U.S. Army for 6 CH-47F Block II Chinook helicopters, raising the number of these helicopters under contract to 24.
In other news, Boeing remains on analysts’ radar and currently sports a Strong Buy rating, with an average upside potential of 26% as of the close on April 16.
The Boeing Company is a leading aerospace company that manufactures commercial airplanes, space systems, and defense equipment for customers in more than 150 countries.
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