In this article we will list the 5 Best Drone Stocks to Buy for the Next 3 Years. Please visit 8 Best Drone Stocks to Buy for the Next 3 Years if you’d like see an extended list and how we came up with the list of best drone stocks.
5. L3Harris Technologies, Inc. (NYSE:LHX)
Number of Hedge Fund Holders: 48
L3Harris Technologies, Inc. (NYSE:LHX) is among the 8 Best Drone Stocks to Buy for the Next 3 Years. The company’s shares have surged over 22% year-to-date and are in focus as the Middle East conflict intensifies.
While talking to Yahoo Finance on March 13, Hennion & Walsh CIO Kevin Mahn mentioned that L3Harris’ missiles and missile protection were widely being used in the Iran war. He noted that the stock had a dividend yield of about 1.3% and was trading at about 30 times the forward earnings, which suggests it was neither cheap nor too expensive.
Last week, Trump met with leaders of several defense contractors, including L3Harris Technologies, Inc. (NYSE:LHX), to discuss an increase in production of what the U.S. president described as ‘Exquisite Class’ weaponry.
According to a report on CNBC this Friday, Citigroup analyst John Godyn reiterated the firm’s bullish outlook on companies that deal with mission-critical defense systems. He sees a strong long-term investing case for these stocks, which include L3Harris, Karman Holdings, and RTX Corp, even as the frequency of Iranian attacks slows down.
As of the close on March 13, LHX is a Strong Buy with an average share price upside potential of 10.49%.
L3Harris Technologies, Inc. (NYSE:LHX) provides end-to-end technology solutions that connect the air, land, space, sea, and cyber domains for national security.
4. Lockheed Martin Corporation (NYSE:LMT)
Number of Hedge Fund Holders: 59
Lockheed Martin Corporation (NYSE:LMT) is among the 8 Best Drone Stocks to Buy for the Next 3 Years. On March 12, the Department of War (DOW) announced that the company was awarded a contract worth $111.5 million by the Naval Air Systems Command for the procurement of the F-35 Drag Chute System.
This is a fixed price order against an earlier ordering agreement. According to the release, the F-35 Drag Chute System is being procured for the Lot 18-19 aircraft delivery ‘in support of Non-U.S. DOW Participants and Foreign Military Sales customer’s operational aircraft’.
In other news, Lockheed Martin Corporation (NYSE:LMT) further expanded its ties with Japan during the week by providing the Japanese Ministry of Defense with a second Aegis System-Equipped Vessel (ASEV) shipset, including AN/SPY-7(V)1 radar equipment.
Earlier in the month, the defense contractor announced that it will supply an anti-jamming payload for Japan’s Next-Generation Defense Satellite Communication System, which will offer enhanced interoperability and interference resistance.
The stock remains on analysts’ radar and currently carries a Hold rating as of the close on March 13. It has a one-year average share price target of $659.31, representing an upside of 2%.
Lockheed Martin Corporation (NYSE:LMT) is one of the world’s largest defense contractors. It specializes in the research, design, and development of advanced technology systems, products, and services.
3. Honeywell International Inc. (NASDAQ:HON)
Number of Hedge Fund Holders: 79
Honeywell International Inc. (NASDAQ:HON) is among the 8 Best Drone Stocks to Buy for the Next 3 Years. On March 12, Morgan Stanley analyst Christopher Snyder lifted the price target on the stock to $245 from $235 and reiterated an Equal Weight rating. The firm said it was revising earnings estimates and rolling forecasts for the company.
This follows Deutsche Bank’s price target adjustment on March 4, lifting it to $292 from $273 while maintaining a Buy rating. The move came as part of the bank’s update of the stock’s sum-of-the-parts valuation.
As of the close of business on March 13, Honeywell International Inc. (NASDAQ:HON) is a Strong Buy, with a one-year average share price target of $252.94, which reflects an upside potential of 8%.
In other news, on March 3, the company said it had filed with the Securities and Exchange Commission the Form 10 registration statement for the spin-off of Honeywell Aerospace, which will create one of the largest aerospace and defense stocks to trade on the market by the third quarter of 2026. The new company will trade under the ticker ‘HONA’.
Honeywell International Inc. (NASDAQ:HON) helps organizations address their most complex challenges in aviation, automation, and energy transition.
2. RTX Corporation (NYSE:RTX)
Number of Hedge Fund Holders: 79
RTX Corporation (NYSE:RTX) is among the 8 Best Drone Stocks to Buy for the Next 3 Years. According to a report on TipRanks, Morgan Stanley analyst Kristine Liwag reiterated the firm’s Overweight rating on the stock on March 7, with a price target of $235.
This is a reaffirmation of the investment banking company’s earlier update in late January when it lifted the price target from $215 following the defense contractor’s strong fourth-quarter results.
As of the close of business on March 13, RTX Corporation (NYSE:RTX) is a Strong Buy with an average share price upside potential of 11%.
In other news, on Friday the company announced that its Raytheon business had completed a $115 million expansion of its missile integration facility in Alabama, which is now expected to increase the facility’s delivery and integration capacity by more than 50%.
The development follows last month’s agreement with the Department of War to expand the production and delivery of Tomahawks, AMRAAM missiles, and other missiles and interceptors.
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.
1. The Boeing Company (NYSE:BA)
Number of Hedge Fund Holders: 114
The Boeing Company (NYSE:BA) is among the 8 Best Drone Stocks to Buy for the Next 3 Years. According to a March 12 press release from the Department of War, the company has been awarded a $2.34 billion option exercise modification to an earlier Air Force contract for the E-7A Rapid Prototype Airborne Mission Segment.
Work on the project will be performed at Washington, Oklahoma City, Huntsville, and Heath, with completion planned for the third quarter of 2032.
The Boeing Company (NYSE:BA) remains on analysts’ radar and currently sports a Strong Buy rating based on 14 analyst recommendations. As of the close of business on March 13, the stock has an average share price upside potential of 32%.
Recent updates include a March 6 update from Jefferies analyst Sheila Kahyaoglu reiterating the firm’s Buy rating on the stock with a price target of $295, amid reports that the company is nearing a 500-jet order from China ahead of President Trump’s upcoming official visit to Beijing.
The Boeing Company (NYSE:BA) is a leading aerospace company that manufactures commercial airplanes, space systems, and defense equipment for customers in more than 150 countries.
While we acknowledge the potential of BA 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 BA and that has 100x upside potential, check out our report about the cheapest AI stock.
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