In this article, we will list the 5 Best Drone Stocks to Buy According to Wall Street Analysts. Please visit 9 Best Drone Stocks to Buy According to Wall Street Analysts if you’d like to see an extended list and how we came up with it.
5. Northrop Grumman Corporation (NYSE:NOC)
Share Price Upside: 33%
Number of Hedge Fund Holders: 62
Northrop Grumman Corporation (NYSE:NOC) is among the 9 Best Drone Stocks to Buy According to Wall Street Analysts. Last week, the company announced that its XRQ-73 hybrid electric uncrewed aircraft had started flight testing.
Source: Ondas Holdings Inc. Press Release
The aircraft has been designed and made to advance propulsion technologies for the Defense Advanced Research Projects Agency (DARPA)’s SHEPARD program. The flight tests are being seen as a significant milestone for lightweight, unmanned aircraft.
According to the press release, XRQ-73’s hybrid electric propulsion system will offer efficient fuel consumption and lower emissions, alongside improved operational flexibility, which will aid in the future development of new aircraft designs.
In other news, Northrop Grumman Corporation (NYSE:NOC) continues to remain on analysts’ radar and currently sports a Moderate Buy rating, with an average share price upside potential of 33% as of the close of business on May 8.
Recent updates include J.P. Morgan analyst Seth Seifman, who on May 6 reiterated a Hold rating on the stock with a price target of $635, according to a report on TipRanks.
Northrop Grumman Corporation (NYSE:NOC) 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.
4. AeroVironment, Inc. (NASDAQ:AVAV)
Share Price Upside: 80%
Number of Hedge Fund Holders: 40
AeroVironment, Inc. (NASDAQ:AVAV) is among the 9 Best Drone Stocks to Buy According to Wall Street Analysts. Earlier in the month, the company said it had secured a prototype agreement from the U.S. Army to build, test, and deliver the Switchblade 400 loitering munition under the Low-Altitude Stalking and Strike Ordnance (LASSO) program.
The award has enhanced Switchblade 400’s reputation as a key component of the program, supporting the Army’s modernization efforts to deploy agile weapons. It also reflects the service’s confidence in the company’s ability to scale and positions it well as a likely long-term partner for the Army.
Following the news, Clear Street analyst Brian Dobson reiterated a Buy rating on AeroVironment, Inc. (NASDAQ:AVAV) on May 4, with a price target of $293. According to TipRanks, the firm noted the agreement in a research note to investors, and added that the company’s shares were ‘attractively valued’.
As of the close of business on May 8, the stock carries a Strong Buy rating based on 16 analysts’ recommendations. It has an average 1-year share price target of $302.29, representing an 80% upside.
AeroVironment, Inc. (NASDAQ:AVAV) designs and manufactures unmanned aerial vehicles, ground robotic systems, and loitering munitions.
3. Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS)
Share Price Upside: 81%
Number of Hedge Fund Holders: 41
Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) is among the 9 Best Drone Stocks to Buy According to Wall Street Analysts. On May 7, RBC Capital cut its price target on the stock to $80 from $100, while maintaining an Outperform rating.
The adjustment followed the company’s first-quarter 2026 results, which reported 16% organic revenue growth to $371 million. Adjusted EBITDA margin came in at just over 10%. Adjusted EPS stood at $0.16, up 33% year-over-year.
Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) also raised its full-year guidance for 2026 to include the impact of Nomad and Orbit acquisitions. RBC Capital noted that while the increase reflected strength across the business, it was cutting the estimated EBITDA multiple for the company from 65-times to 50-times, citing continued talks about delayed contract award timings.
Following the results, Citizens also trimmed its price target on the stock to $105 from $125 and kept a Market Outperform rating, while Piper Sandler cut the price target to $75 from $99 and reiterated a Neutral rating.
As of the close of business on May 8, KTOS is a Strong Buy based on recommendations from 14 analysts and has an average share-price upside potential of 81%.
Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) is a technology company focused on the development of advanced products and systems for defense, national security, and commercial markets.
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.
1. Ondas Inc. (NASDAQ:ONDS)
Share Price Upside: 122%
Number of Hedge Fund Holders: 29
Ondas Inc. (NASDAQ:ONDS) is among the 9 Best Drone Stocks to Buy According to Wall Street Analysts. As of the close on May 8, the stock is a Strong Buy based on recommendations from 7 analysts and has an average share-price upside potential of 122%.
Recent updates include Lake Street analyst Max Michaelis, on April 13, maintaining a Buy rating with a share price target of $19. This is a reaffirmation of the firm’s previous update in January, when it lifted the price target from $10 following the company’s OAS Virtual Investor Day, in which it shared upbeat financial targets for the future.
In other news, Ondas Inc. (NASDAQ:ONDS) said on April 24 that it had completed the $175 million merger with defense prime contractor Mistral Inc. The move marks a significant step in the company’s quest to expand participation across the Department of War’s programs and is likely to contribute to revenue growth and EBITDA ahead, especially since it already has over $1 billion in programs.
Eric Brock, Chairman and CEO, further added the following on the development:
“This merger marks a significant step in positioning Ondas as a fully integrated defense prime contractor, accelerating our expansion across the U.S. defense market. Mistral brings established access to key contract vehicles, a U.S.-based manufacturing and integration footprint, and deep customer relationships across UAVs, loitering munitions, and ground robotics-directly aligned with the core segments of our platform. Together, we are strengthening our ability to deliver mission-ready systems to U.S. government customers at scale.”
Ondas Inc. (NASDAQ:ONDS) provides private wireless solutions and autonomous aerial and ground robot intelligence for the defense, security, and industrial markets.
While we acknowledge the potential of ONDS 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 ONDS and that has 100x upside potential, check out our report about the cheapest AI stock.
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