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.
7. Honeywell International Inc. (NASDAQ:HON)
Analyst Upside: 15.59%
Number of Hedge Fund Holders: 75
Honeywell International Inc. (NASDAQ:HON) ranks among the best drone stocks to buy according to analysts. Although Honeywell International Inc. (NASDAQ:HON) increased its 2025 revenue projection, Jefferies kept its Hold rating and $240 price target on the company on August 4, in line with the broader analyst consensus of Hold.
Due to advancements in its Building Automation (BA) division, which was previously predicted to expand at mid-single digits, Honeywell International Inc. (NASDAQ:HON) raised its organic revenue prediction for 2025 by two percentage points.
According to year-to-date short cycle improvement, the company’s Industrial Automation (IA) segment outlook also improved, going from a mid-single digit decrease to a low-to-mid-single digit decline. In the first half, BA was up 8%, while IA was down just 2%.
Honeywell International Inc. (NASDAQ:HON) is a multinational conglomerate headquartered in Charlotte, North Carolina. Performance materials and technology, building automation, aircraft, and safety and productivity solutions are the company’s four main business sectors.
6. Amazon.com, Inc. (NASDAQ:AMZN)
Analyst Upside: 17.87%
Number of Hedge Fund Holders: 328
Amazon.com, Inc. (NASDAQ:AMZN) ranks among the best drone stocks to buy according to analysts. Evercore ISI highlighted Amazon.com, Inc. (NASDAQ:AMZN)’s strategic actions in the grocery industry on August 13, reaffirming its Outperform rating and $280 price target on the company. The firm noted that by strengthening customer engagement through a high-frequency purchase category, Amazon’s tighter integration of groceries into the Prime ecosystem raises customer lifetime value and stickiness.
Amazon’s $25 free delivery threshold, according to Evercore ISI, puts pressure on rivals like Walmart and Instacart to lower their prices. The approach is in line with Amazon’s previously declared $4 billion commitment to use the country’s current logistics infrastructure to extend its same-day and next-day delivery network to over 4,000 smaller and rural U.S. communities by 2026.
According to Evercore’s 13th Annual Amazon Survey, Prime Same-Day delivery multiplies the frequency of purchases, the expansion of categories, and the total amount spent by customers on Amazon.com, Inc. (NASDAQ:AMZN). The firm refers to this as “Shipping Elasticity”, which suggests that faster shipping results in more frequent and larger purchases.
Amazon.com, Inc. (NASDAQ:AMZN), is an American multinational technology company that offers a wide range of commercial interests that include digital streaming, online advertising, e-commerce, cloud computing through Amazon Web Services (AWS), and artificial intelligence.
5. Textron Inc. (NYSE:TXT)
Analyst Upside: 18.19%
Number of Hedge Fund Holders: 29
Textron Inc. (NYSE:TXT) ranks among the best drone stocks to buy according to analysts. On July 28, UBS raised its price target for Textron Inc. (NYSE:TXT) from $73 to $88 while upgrading it from Sell to Neutral. UBS’s assessment that business jet demand is still strong is reflected in the upgrade, while Textron has removed its troubled Powersports division from its holdings.
Bell margin expectations have reset lower, according to UBS, which also sees little chance of a decline from consensus projections for 2025 and 2026. Over the past year, aviation orders have fared better than UBS had predicted, and although the firm still sees oversupply risk, it no longer anticipates a short-term cyclical drop as backlog provides additional buffer.
Textron Inc. (NYSE:TXT) uses its network of aircraft, defense, finance, and industrial firms to make products for consumers in a variety of industries. Some of the company’s notable subsidiaries include Lycoming Engines, Bell Textron, Textron Aviation, Arctic Cat, and Textron Systems.
4. Archer Aviation Inc. (NYSE:ACHR)
Analyst Upside: 31.91%
Number of Hedge Fund Holders: 33
Archer Aviation Inc. (NYSE:ACHR) ranks among the best drone stocks to buy according to analysts. Benchmark reaffirmed its Buy rating and $12 price target for Archer Aviation Inc. (NYSE:ACHR) on August 12, pointing to the company’s expanding defense technology portfolio and advancements in eVTOL certification.
The firm reports that 15% of Archer’s compliance verification documents have been approved by the FAA, indicating that the company’s electric vertical takeoff and landing certification effort is progressing. Given the recent executive orders from the Trump Administration and Archer’s status as the exclusive air taxi carrier for the 2019 LA Olympics, Benchmark anticipates that the certification process will progress more quickly.
With $1.7 billion in cash at the end of the most recent quarter, Benchmark thinks Archer Aviation Inc. (NYSE:ACHR) is well-positioned to market what it calls “one of the largest mobility advancements in recent memory.” Later this year, the firm expects Archer to start selling its Launch Edition aircraft internationally.
With a focus on urban air mobility and air taxi services, Archer Aviation Inc. (NYSE:ACHR) designs and manufactures electric vertical takeoff and landing (eVTOL) aircraft.
3. Draganfly Inc. (NASDAQ:DPRO)
Analyst Upside: 40.39%
Number of Hedge Fund Holders: N/A
Draganfly Inc. (NASDAQ:DPRO) ranks among the best drone stocks to buy according to analysts. On July 22, Draganfly Inc. (NASDAQ:DPRO) declared that a major defense contractor has purchased its Commander 3XL Unmanned Aerial Vehicle systems. According to the company, the buyer is “a globally recognized defense contractor specializing in persistent surveillance technologies for military operations” that collaborates with the armed forces of the United States and its allies.
Draganfly Inc. (NASDAQ:DPRO) claims that the Commander 3XL drones will help with real-time situational awareness, early warning, and perimeter protection. The systems are intended to function in tandem with ground-based command centers and persistent platforms. The purchase, according to Draganfly Inc. (NASDAQ:DPRO), shows how adaptable the drone is in both static and dynamic intelligence, surveillance, and reconnaissance settings.
One of the top providers of drone software and solutions, Draganfly Inc. (NASDAQ:DPRO) serves the commercial, public safety, and military sectors.
2. Red Cat Holdings, Inc. (NASDAQ:RCAT)
Analyst Upside: 59.74%
Number of Hedge Fund Holders: 14
Red Cat Holdings, Inc. (NASDAQ:RCAT) ranks among the best drone stocks to buy according to analysts. Red Cat Holdings, Inc. (NASDAQ:RCAT) announced on August 13 that Teal Drones, a subsidiary, obtained AS9100 certification from NSF International Strategic Registrations in July 2025. The AS9100 standard is the internationally accepted standard for quality control in the space, defense, and aviation industries. The certification encompasses the entire product lifespan, including design, production, and maintenance procedures.
The certification confirms that Teal Drones’ Black Widow drone, the winner of the U.S. Army’s Short-Range Reconnaissance Program, has quality management procedures in place. The Black Widow is intended for military use as a secure, NDAA-compliant drone for intelligence, surveillance, and reconnaissance.
Red Cat Holdings, Inc. (NASDAQ:RCAT) is a Puerto Rico-based company that supplies the drone sector with products, services, and solutions. The company offers its services to the consumer, military, and consumer sectors.
1. ZenaTech, Inc. (NASDAQ:ZENA)
Analyst Upside: 66.67%
Number of Hedge Fund Holders: 1
ZenaTech, Inc. (NASDAQ:ZENA) ranks among the best drone stocks to buy according to analysts. On August 7, ZenaTech, Inc. (NASDAQ:ZENA) made its eighth and largest acquisition in the drone services industry by purchasing Cardinal Civil Resources, a land surveying and engineering company located in Virginia.
The acquisition adds a portfolio of government and commercial clients, including the U.S. Department of Transportation, to ZenaTech’s Drone as a Service (DaaS) operations in Virginia, North Carolina, and South Carolina.
The purchase coincides with possible regulatory reforms for the drone sector. A uniform framework for drone operations would take the place of case-by-case waivers under a rule proposed by U.S. Transportation Secretary Sean Duffy on August 5 to expand Beyond Visual Line of Sight activities.
Vancouver-based IT company ZenaTech, Inc. (NASDAQ:ZENA) specializes in corporate software as a service, drone as a service (DaaS), AI drone systems, and quantum computing. By mid-2026, the company aims to have 25 Drone as a Service locations around the country.
While we acknowledge the potential of ZENA 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 ZENA and that has 100x upside potential, check out our report about this cheapest AI stock.
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