In this article, we will take a look at some of the best unmanned aerial vehicle stocks that are currently offering attractive upside potential to investors.
On April 1, Fox Business had a discussion with Shield AI co-founder Brandon Tseng about how drone warfare is reshaping the United States’ conflict with Iran on The Claman Countdown. The conversation was about the evolution of unmanned aerial systems from the Predator and Reaper drones used in the war on terror to the low-cost tactical drones in Ukraine and now Iran. The conversation was worth paying attention to for investors interested in the evolution of defense technology and military modernization.
In general terms, the U.S. military is using the high-low mix strategy by retaining its advanced military equipment, like the Tomahawk missile, while ramping up the production of the smaller, more affordable drones. Tseng highlighted the need for more affordable drones when he cited the U.S. Air Force’s early loss of 12 MQ-9 Reaper unmanned aircraft, which were worth $40 million each. To support the strategy, Secretary of Defense Pete Hegseth is asking Congress for $200 billion in funding.
The message Tseng was giving investors was quite clear: drones will revolutionize modern warfare, replacing ground troops with a tremendous need for manufacturing capacity. The question investors want answered is which military contractors will provide the drones with the capacity for rapid manufacturing.
In this environment, understanding which defense contractors are positioned to deliver rapid-production drone systems matters more than ever. With that background, let’s explore our 7 Best Unmanned Aerial Vehicle Stocks to Buy Now.
Our Methodology
To identify relevant stocks for this article, we conducted a screening of U.S.-listed unmanned aerial vehicle companies with market capitalizations above $2 billion. Also, we only shortlisted stocks with at least 30% upside potential according to TipRanks consensus, as of April 2 closing. Finally, we selected 7 stocks with the highest upside and ranked them in ascending order.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).
7. The Boeing Company (NYSE:BA)
The Boeing Company (NYSE:BA) is one of the 7 best unmanned aerial vehicle stocks to buy now.
On April 1, The Boeing Company and the U.S. Department of War reached a seven-year deal to triple the production capacity of PAC-3 missile defense system seekers in response to the growing demand for air and missile defense worldwide. The deal is a component of the Arsenal of Freedom initiative, which seeks to fortify the American defense system.
The missile defense systems of the United States and its allies can detect, chase, and eliminate threats, including ballistic and cruise missiles, hostile aircraft, and hypersonic threats, thanks to the Boeing-made missile defense system seekers. Since 2024, Boeing has made over $200 million in investments, including a 35,000-square-foot extension of its present factory in Huntsville, Alabama, where it now manufactures PAC-3 missile defense system seekers.
The deal enables Boeing to pursue future cash-neutral investment opportunities in the entire production value chain which will consequently ensure certainty for meeting a growing demand.
The Boeing Company works on building, selling, and providing other services associated with the aerospace and defense industry. Its portfolio consists of three divisions, which include Commercial Airplanes, Defense, Space & Security, and Global Services. These segments collectively cover a number of areas which include commercial aircraft services, logistic and technical services, and intelligence services, amongst others.
6. Joby Aviation Inc. (NYSE:JOBY)
Joby Aviation Inc. (NYSE:JOBY) is one of the 7 best unmanned aerial vehicle stocks to buy now.
On March 10, H.C. Wainwright made a comment on the eight selections made in the eVTOL Integration Pilot Program announced by the U.S. Department of Transportation and the FAA. According to Wainwright, the beginning of the U.S. federal initiative is an important de-risking event for the industry players, including Joby Aviation Inc..
According to the firm, the 100% bonus depreciation may prompt the fleet operators, along with the airline partners, including United and Delta, to consume the supplies early, while the limited options available to the FAA.
On February 25, Uber Technologies Inc. (NYSE:UBER) and Joby Aviation Inc. announced that Uber Air, powered by Joby, is offering passengers a preview of how they may reserve an all-electric air taxi straight through the Uber app.
Later this year, Joby intends to transport its first passengers in Dubai, marking a significant turning point in the collaboration to provide multimodal transport to cities worldwide. Users only need to launch the Uber app, enter their location, and select Uber Air, powered by Joby, if it is available.
Joby Aviation Inc. conducts studies on electric vertical takeoff and landing aircraft. It is also involved in their production, evaluation, and sales around the world. It offers several services to its customers, which include facilitation of passenger transportation, providing flight services to the government, and more.
5. AeroVironment Inc. (NASDAQ:AVAV)
AeroVironment Inc. (NASDAQ:AVAV) is one of the 7 best unmanned aerial vehicle stocks to buy now.
On April 1, AeroVironment Inc. announced its selection by the US Navy to help meet the requirements for vital naval operations through Contractor-Owned, Contractor-Operated Intelligence, Surveillance, and Reconnaissance services. The company would compete with other industry partners to deliver turnkey Contractor-Owned, Contractor-Operated ISR services to the US Navy, as part of its initiative to modernize and extend Contractor-Owned, Contractor-Operated ISR capabilities.
With its JUMP 20-X Group 3 Vertical Take Off and Landing UAS, the US Navy would be able to take advantage of increased ISR capabilities to meet the demands for different land and marine missions.
On March 24, AeroVironment Inc. announced the launch of LOCUST X3. It is a third-generation high-energy laser weapon system technology that offers very precise speed-of-light engagement capabilities to quickly neutralize unmanned aerial system threats.
Wahid Nawabi, chairman, president, and CEO of AeroVironment Inc., stated that LOCUST X3 offers an affordable, scalable solution to neutralize mass aerial threats and preserve a decisive advantage. Nawabi cautions that adversaries are using mass drone assaults and saturation techniques to challenge mission success and war survivability in the current evolving battlespace.
AeroVironment Inc. operates in services associated with robotic systems for different business companies and government organizations. It works by creating, manufacturing, and providing support to these organizations. The Company develops drones and unmanned systems, along with AI-powered technologies for the defense industry.
4. Axon Enterprise Inc. (NASDAQ:AXON)
Axon Enterprise Inc. (NASDAQ:AXON) is one of the 7 best unmanned aerial vehicle stocks to buy now.
On February 26, Jordan Lyonnais from BofA reduced the price target on Axon Enterprise Inc. from $805 to $700 while maintaining a Buy rating on the stock.
Although the price target decline indicates the current negative sentiment prevailing in the company’s fundamentals, the firm still believes that Axon’s growth story remains intact and has chances for further acceleration.
On February 25, David Paige from RBC Capital reduced the price target on Axon Enterprise Inc. from $860 to $735 while maintaining an Outperform rating on the stock. The ability of the company to continue developing new categories and verticals and still be at the top in terms of the U.S. public safety market is evidenced by the fact that the objectives set for 2028 are exceeding and leading the fourth quarter and FY 2026 result above expectations.
According to the analyst, the company is benefiting from its ARR, moats, and network effects due to its leadership in AI.
Axon Enterprise Inc. offers technological solutions to different organizations for public safety. It is engaged in the production and sale of cloud-based software-as-a-service technology. Additionally, it also works on the development and marketing of various built-in hardware technologies. Its client portfolio includes local and international government organizations, third-party resellers, and more.
3. Kratos Defense & Security Solutions Inc. (NASDAQ:KTOS)
Kratos Defense & Security Solutions Inc. (NASDAQ:KTOS) is one of the 7 best unmanned aerial vehicle stocks to buy now.
On March 26, the Naval Surface Warfare Centre, Port Hueneme Division, awarded Kratos Defence & Security Solutions Inc. a contract to produce and provide up to 36 Oriole solid rocket motors and three Oriole Thrust Vector Control nozzle kits.
The deal also includes a funded base contract for the Oriole program, along with options that have the potential to raise the contract value for the solid rockets to $39.08 million. It also involves an option worth $10.14 million for three Oriole TVC production kits.
On March 3, Kratos Defence & Security Solutions Inc. announced that a manufacturing contract for an amount of around $7 million has been given to them for a Counter UAS System. The system helps to identify, monitor, and classify potential threats such as cruise missiles, low-profile UAVs, and other aerial attacks. The secure facility of Kratos will be used for this program.
Kratos Defense & Security Solutions Inc. serves the defense industry, commercial markets, national security organizations, and government agencies. The company delivers virtual systems for space vehicles, command and control software, and tracking solutions. It also offers aerial drone systems, propulsion systems for drones, supersonic systems, and intelligence surveillance, and microwave electronic products.
2. Ondas Inc. (NASDAQ:ONDS)
Ondas Inc. (NASDAQ:ONDS) is one of the 7 best unmanned aerial vehicle stocks to buy now.
On March 26, Maxim increased its price target on Ondas Inc. from $16 to $22 while maintaining a Buy rating on the stock. The company is in an advantageous position to benefit from an increased military budget and the requirement for independent solutions for defense with its global system of systems approach. The firm also stated that Ondas currently has enough cash to sustain its operations until 2028, when it would reach its breakeven point.
On March 23, Ondas Holdings Inc. announced $50.7 million in revenue, far more than the $7.2 million made last year. CEO Eric Brock stated that 2025 was a real turning point for the company. Things took off after the company was able to successfully combine all its different technologies into a single platform.
The greatest achievement was made possible through Ondas Autonomous Systems, which was the impetus for the company’s greatest performance to date. Brock also noted that the company started 2026 with a growing backlog and more momentum than ever before.
The company closed 2025 with over $1.5 billion in pro forma cash on hand, giving the team the power to grow operations continuously and take advantage of new opportunities. Long-term value creation remains the focus as the company plans to execute its strategy to drive sustained growth.
Ondas Inc. develops and sells private wireless networks, autonomous drones, and automated data solutions and platforms through its two segments, i.e., Ondas Networks and Ondas Autonomous Systems. Its offerings include FullMAX, FullMAX SDR, Optimus, Insightful, and Raider, which have mission-critical applications.
1. Archer Aviation Inc. (NYSE:ACHR)
Archer Aviation Inc. (NYSE:ACHR) is one of the 7 best unmanned aerial vehicle stocks to buy now.
On March 9, Archer Aviation Inc. announced that the U.S. Department of Transportation and Federal Aviation Administration have selected its partners in Texas, Florida, and New York to be part of the White House’s Electric Vertical Takeoff and Landing Aircraft Integration Pilot Program. This marks a major step towards bringing air taxis powered by electric propulsion to market in the United States.
For the first time in nearly 80 years, there is an opportunity to introduce a new type of aircraft. To prepare for the midnight aircraft flights under the eIPP, Archer will work with the Texas Department of Transportation, Florida Department of Transportation, and Port Authority of New York and New Jersey. Adam Goldstein, founder and CEO of Archer, stated:
“This is the clearest sign yet from the White House, FAA, and DOT that bringing air taxis to market is a real priority.”
In addition to its ongoing preparations for air taxi operations in Los Angeles during the 2028 Olympic Games, Archer anticipates that this will give useful operating experience that will assist in shaping future deployments in the US and drive public acceptability.
Archer Aviation Inc. manufactures technological products and services associated with aircraft. It offers solutions to both the defense sector and the commercial sector. In addition to this, the company provides electric vertical takeoff and landing (eVTOL) aircraft for urban air taxi operations.
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