5 Best Drone Stocks to Buy According to Wall Street Analysts

2. Red Cat Holdings, Inc. (NASDAQ:RCAT)

Share Price Upside: 103%

Number of Hedge Fund Holders: 16

Red Cat Holdings, Inc. (NASDAQ:RCAT) is among the 9 Best Drone Stocks to Buy According to Wall Street Analysts. On May 7, the company reported financial results for the first quarter of 2026.

Total revenue was reported at $15.5 million, growing 849% year-over-year. Gross profit came in at $2 million, increasing $2.8 million from the same period last year. Gross margin was 12.7%, improving 199% sequentially, and up from (52.1)% in the prior year’s quarter.

Business highlights included Red Cat Holdings, Inc. (NASDAQ:RCAT) receiving new orders for its Black Widow drones from allies in NATO and the Asia-Pacific, alongside a strategic agreement with Ukrainian state-owned entity Spetstechnoexport to collaborate on advanced unmanned and robotic systems.

During the quarter, the company also announced the acquisition of California-based Apium Swarm Robotics, Inc. The firm builds distributed control systems for uncrewed surface vessels and swarming drones.

Following the earnings call, Needham analyst Austin Bohlig reiterated a Buy rating on the stock on May 8, with a share price target of $20, representing 93% upside from Friday’s close.

Red Cat Holdings, Inc. (NASDAQ:RCAT) provides drone and robotics solutions for defense, national security, and commercial needs.