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11 Best Military Drone Stocks To Invest In

In this article, we will take a look at the 11 best military drone stocks to invest in. To know more about the top stocks, go directly to 5 Best Military Drone Stocks To Invest In.

The war between Russia and Ukraine, started in February 2022, fueled the demand for drones as both militaries utilized drones for different operations including intelligence, surveillance, and reconnaissance operations, target acquisition support, and others, according to Fortune Business Insights. Recently, Iran provided loitering munitions to the Russian army in Ukraine. According to the Japan-based financial news provider Nikkei Asia, Russian firms imported at least 37 Chinese unmanned aerial vehicles, or drones, from December last year to April 2023.

Drones can also be used for food or package deliveries. Morgan Stanley Research estimated that the online food delivery sector is anticipated to reach $60 billion in sales by 2025. And that’s why there is a huge demand for foods and packages to be delivered through drones to customers’ doorsteps. There are a total of 863,728 drones and 352,222 commercial drones registered in the United States for multiple purposes, according to the US Federal Aviation Administration. Technology firms are increasing drone adoption in their businesses after the FAA implemented regulatory benchmarks for commercial drones.

In the United States, the drone market is expected to reach a market value of roughly $82.9 billion by the end of 2032 with a compound annual growth rate of 22.2%. It was estimated to stand at $11.1 billion in 2022. Military drones were the market leader with 49.8% share last year. Technology and innovation helped the US drone market to thrive. President Joe Biden’s administration fiscal 2024 budget request intends to accelerate the US military’s purchase of advanced combat drones in order to enhance the country’s defense capabilities. The US military regularly provides contracts to defense firms as it recently awarded a $118 million contract to RTX Corporation (NYSE:RTX) for a common sensor payload for the MQ-1C Gray Eagle drone.

Looking ahead, the drone market size is anticipated to increase to $54.8 billion by 2030, with a compound annual growth rate of 25.82% during the forecast term, while the global commercial drone market was valued at around $8.8 billion in 2022. As military escalations are increasing globally, including the recent Israel-Hamas conflict in the Middle East, militaries around the world will speed up the adoption of drones to strengthen their defense. For this, we decided to take a look at the best military drone stocks to invest in. Some of the biggest drone names in the industry are Lockheed Martin Corporation (NYSE:LMT), RTX Corporation (NYSE:RTX), Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS), and others.

You can also read 11 Best Gun Stocks To Buy in 2023 and 14 Best American Stocks To Buy Heading into 2024.

11 Best Military Drone Stocks To Invest In

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Our Methodology

To compile the list of the best military drone stocks to invest in, we filtered drone companies listed on the New York Stock Exchange and Nasdaq, and then we picked the top 15 largest military drone stocks. The stocks were ranked based on Insider Monkey’s database of 910 hedge funds tracked at the end of Q2 this year. The ranking was based on the ascending order of the number of hedge fund investors in each stock and then the top 11 best military drone stocks are selected for investment purposes.

Best Military Drone Stocks To Invest In

11. Lilium N.V. (NASDAQ:LILM)

Number of Hedge Fund Holders: 8

Lilium N.V. (NASDAQ:LILM) ranks 11th in our list of the best military drone stocks to invest in. The Germany-based firm provides research and development of electric vertical takeoff and landing aircraft and jets for high-speed air transport system. Lilium N.V. (NASDAQ:LILM) recently completed the high-voltage electrical harnesses for the Lilium Jet. In June this year, it signed an agreement to sell 100 Lilium jets to Shenzhen Eastern General Aviation.

Insider Monkey took a look at hedge fund portfolios for Lilium N.V. (NASDAQ:LILM) second quarter of 2023 investments and concluded that 8 had stakes in the firm. Israel Englander’s Millennium Management was Lilium N.V. (NASDAQ:LILM)’s largest stakeholder which owned about 811,000 stakes for about $1.4 million.

10. Vertical Aerospace Ltd. (NYSE:EVTL)

Number of Hedge Fund Holders: 10

Vertical Aerospace Ltd. (NYSE:EVTL) is a United Kingdom-based aerospace and technology firm. The company develops VX4, an electric vertical takeoff and landing aircraft. Vertical Aerospace Ltd. (NYSE:EVTL) recently entered into an agreement with Hanwha Aerospace to design, test, produce, and supply tilt and blade pitch control system for Vertical Aerospace Ltd. (NYSE:EVTL)’s VX4 electric aircraft. In its first half 2023 earnings report, the company said in May it partnered with Kakao Mobility, a South Korean mobility-as-a-service company, to evaluate and enhance commercially sustainable urban air mobility travel offerings in South Korea.

Insider Monkey took a look at Q2 hedge fund portfolios for Vertical Aerospace Ltd. (NYSE:EVTL) and found that 10 had stakes in the firm. John M. Angelo And Michael L. Gordon’s Angelo Gordon & Co was the largest stakeholder of Vertical Aerospace Ltd. (NYSE:EVTL) which bought 400,000 stakes that were valued at $788,000.

9. Joby Aviation, Inc. (NYSE:JOBY)

Number of Hedge Fund Holders: 16

Joby Aviation, Inc. (NYSE:JOBY) is a vertically integrated air mobility company that ranks 9th in our list of the best military drone stocks to invest in. Incorporated in 2009, Joby Aviation, Inc. (NYSE:JOBY) recently supplied its first electric vertical take-off and landing aircraft to the US Air Force, which is a part of its $131 million contract with the US Department of Defense. This was the first electric air taxi deployed on a US military base. In September, Joby Aviation, Inc. (NYSE:JOBY) announced its plans to construct a facility in Ohio to manufacture up to 500 aircraft per year.

Insider Monkey took a look at Q2 hedge fund portfolios for Joby Aviation, Inc. (NYSE:JOBY) and found that 16 had stakes in the firm. Paul Marshall And Ian Wace’s Marshall Wace LLP was the largest stakeholder of Joby Aviation, Inc. (NYSE:JOBY) which bought about 78,000 stakes that were valued at $798,422.

Along with Honeywell International Inc. (NASDAQ:HON), The Boeing Company (NYSE:BA), and RTX Corporation (NYSE:RTX), Joby Aviation, Inc. (NYSE:JOBY) is one of the best military drone stocks to invest in.

8. AeroVironment, Inc. (NASDAQ:AVAV)

Number of Hedge Fund Holders: 16

AeroVironment, Inc. (NASDAQ:AVAV) designs, manufactures, and supplies robotic systems and related services for government agencies globally. The American defense contractor has a fleet of unmanned aircraft solutions including T-20, Jump 20, Puma LE, Vapor 55 MX, and others. The company was also awarded a $64.6 million contract from the US Army in April to provide Switchblade 300 loitering missile systems. AeroVironment, Inc. (NASDAQ:AVAV) intends to deliver the missiles by July next year. In fiscal Q1 2024, it posted earnings of $1 per share beating analysts’ forecast of $0.4. AeroVironment, Inc. (NASDAQ:AVAV)’s revenue for fiscal Q1 was $152 million, up 40% year-over-year.

Out of 910 hedge funds profiled by Insider Monkey, 16 had stakes in AeroVironment, Inc. (NASDAQ:AVAV). The largest stakeholder was William Heard’s Heard Capital which owned about 688,000 stakes of the firm that were valued at $70.4 million.

7. Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS)

Number of Hedge Fund Holders: 18

Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) ranks 7th in our list of the best military drone stocks to invest in. Incorporated in 1994, the technology firm operates for the defense, national security, and commercial sectors. It manufactures aerial target systems and unmanned tactical aerial platforms through its Kratos’ Unmanned Systems Division. The company recently won a contract for three aviation trainers, for a consolidated value of about $16.9 million, by the US Army’s Program Executive Office Aviation Utility Project Office. The defense firm also provides a tailored aerial target service with an economical pay-per-use option for clients with smaller budgets. Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) posted Q2 earnings of $0.09 per share and revenue of $256.9 million.

Insider Monkey took a look at 910 hedge funds portfolios for Q2 2023 investments and found out that 18 had a stake in Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS). The largest stakeholder was Catherine D. Wood’s ARK Investment Management which had 7.3 million stakes of Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) that were valued at $104.4 million.

Along with Honeywell International Inc. (NASDAQ:HON), The Boeing Company (NYSE:BA), and RTX Corporation (NYSE:RTX), Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) is one of the best military drone stocks to invest in.

6. Ambarella, Inc. (NASDAQ:AMBA)

Number of Hedge Fund Holders: 23

Ambarella, Inc. (NASDAQ:AMBA) ranks 6th in our list of the best military drone stocks to invest in. The California-based firm offers semiconductor solutions that enable high-definition and ultra HD compression, image processing, and deep neural network processing globally. It also develops high-end drones for commercial clients. In recent news, Ambarella, Inc. (NASDAQ:AMBA)’s Finance Chief Brian White will retire from his role on Jan. 31, 2024. In fiscal Q2, the company posted earnings of $0.15 per share and revenue of $62.1 million.

Out of 910 hedge funds profiled by Insider Monkey, 23 held stakes in Ambarella, Inc. (NASDAQ:AMBA). The largest stakeholder was Steve Cohen’s Point72 Asset Management which owned roughly 1.3 million stakes of Ambarella, Inc. (NASDAQ:AMBA) that were valued at $111.8 million.

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Disclosure: None. 11 Best Military Drone Stocks To Invest In is originally published on Insider Monkey.

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