5 Best Drone Stocks to Invest In

In this article, we discuss the 5 best drone stocks to invest in. If you want to read our detailed analysis of these stocks, go directly to the 10 Best Drone Stocks to Invest In.

5. Northrop Grumman Corporation (NYSE: NOC)

Number of Hedge Fund Holders: 40

Northrop Grumman Corporation (NYSE: NOC) is an aerospace and defense company working internationally. The company offers products to the US military and civilian agency customers and ranks 5th on our list of the best drone stocks to invest in.

This April, Northrop Grumman Corporation (NYSE: NOC) acquired a roughly $959.1 million firm-fixed-price contract. The contract is to produce common infrared countermeasures for the US Army Contracting Command, Redstone Arsenal, Alabama. The company also released its first-quarter financial reports, showing that it beat the EPS estimate of $5.48 with their $6.57 EPS that quarter. Revenue for the first quarter was valued at $9.16 billion, demonstrating an 8.94% growth year over year. The stock gained 21.63% in the past 6 months and 25.08% year to date.

As of the end of the first quarter this year, 40 hedge funds out of the 866 tracked by Insider Monkey held stakes in Northrop Grumman Corporation (NYSE: NOC), worth roughly $1.51 billion. This is compared to 40 hedge fund holders in the previous quarter, with a lower stake value of roughly $1.5 billion.

Artisan Partners Limited Partnership, a high value-added investment management firm, mentioned Northrop Grumman Corporation (NYSE: NOC) in its fourth-quarter 2020 investor letter. Here’s what they said:

“New purchases include Northrop Grumman. Northrop Grumman is a leader in manned aircraft, unmanned aircraft, spacecraft and missile-defense systems. We initiated a position in November 2020, as we believe the name is trading at an undeserved discount, despite having the potential to accelerate revenue over the next 24 months. In 2020, Northrup signed a contract to work with the US Air Force on their Ground Based Strategic Deterrent (GBSD) and B21 bomber. We believe the company’s portfolio is well-positioned with a highly desirable space segment business, significant classified content and GBSD driving growth. While the market has been focused on a “blue wave” risk to the defense budget, the industry is typically driven by threat assessment rather than budget constraints. If budget cuts were ever to affect the US Army, that customer represents less than 10% of the company’s revenue. This reinforces our belief that Northrop is well-positioned for the future and trades at an attractive valuation.”