In this article, we will take a look at the 8 Best Drone Stocks to Buy According to Analysts.
A “drone” refers to a remotely piloted aircraft (RPA), which may have any shape or size and can fly entirely on its own or be controlled by a human pilot. These aircrafts were known as “unmanned aircraft systems” (UAS) by the Federal Aviation Administration (FAA) and the US Department of Defense (DoD) in 2005.
The development of defensive technology, which made it possible to remotely pilot aircraft with both weapons and non-weaponized systems, marked the beginning of the rapid evolution of drones. These heavier military drones, which can weigh several kilograms, are essential for use in hazardous situations where human pilots cannot operate. Many government agencies now use smaller drones for a variety of tasks, such as surveillance and mapping in precision agriculture.
In that regard, many initiatives have taken place to streamline the integration of drones. In what officials from the U.S. Army’s Program Executive Office for Aviation refer to as a “centralized, ‘Amazon-like’ storefront,” the army recently announed launching a new online platform for categorizing and buying unmanned aerial systems. By filtering reliable drone solutions based on price and effectiveness, the approach aims to avoid the Pentagon’s drawn-out procurement procedure. The strategy, according to Army officials, is a part of a larger effort to simplify the assessment, acquisition, and deployment of unmanned systems.
In addition, the use of drones designed for particular industries has increased substantially in recent years. These “Consumer” and “Recreational” drones are now a typical aspect of everyday life, especially for drone enthusiasts. Notably, the global commercial drone market is projected to grow from $48.23 billion in 2025 to an impressive $107.06 billion by 2032, expanding at a CAGR of 12.15% during the forecast period.
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Our Methodology
We first sifted through a number of online sources to compile a list of the top drone stocks. We then selected the 8 stocks with an upside potential of over 15% as of August 16. These stocks are ranked in ascending order based on their average share price upside potential, as of August 16. Additionally, we have mentioned the hedge fund sentiment around each stock, as of Q1 2025.
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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
8. AeroVironment, Inc. (NASDAQ:AVAV)
Analyst Upside: 15.56%
Number of Hedge Fund Holders: 23
AeroVironment, Inc. (NASDAQ:AVAV) ranks among the best drone stocks to buy according to analysts. On August 7, AeroVironment, Inc. (NASDAQ:AVAV) and aerospace company SNC established a strategic alliance to create integrated air and missile defense capabilities in support of the Golden Dome for America campaign.
The partnership intends to develop multilayer defense systems in order to defend valuable sites, including military bases, ships, airfields, and vital infrastructure from aerial threats. Moreover, the companies will incorporate modern technologies such as electronic warfare, directed energy, kinetic energy, radio frequency systems, passive and active sensing, and cyber solutions during their collaboration.
SNC CEO Fatih Ozmen emphasized the necessity of “industry ingenuity and collaboration” to guard against complex threats, drawing a comparison between the initiative’s ambition and the Manhattan Project.
Furthermore, Italy entered into a $46.6 million agreement with AeroVironment back in April to replace its aging fleet of AAI RQ-7 Shadow drones with Jump 20 fixed-wing UAVs. AeroVironment’s engineering, technical support, and maintenance services are included in the five-year contract to guarantee the UAVs are completely functional from the start.
AeroVironment, Inc. (NASDAQ:AVAV) is a company that designs, develops, manufactures, delivers, and supports a range of robotic systems and associated services for businesses and government organizations both domestically and abroad.
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