8 Best Drone Stocks to Buy for the Next 3 Years

7. Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS)

Number of Hedge Fund Holders: 41

Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) is among the 8 Best Drone Stocks to Buy for the Next 3 Years. On March 3, the defense company announced it had secured a $7 million production contract for a counter-unmanned aerial system to identify, track, and classify aerial threats.

While no further details were provided in the press release for security considerations, Kratos said this was part of a long-term contract for counter-unmanned aerial system production. Work on the project will be performed in an unnamed secured manufacturing facility of the company.

In other news, Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) continues to remain on analysts’ radar and sports a Strong Buy rating. As of the close of business on March 13, it has an average upside potential of 34% in its share price.

On Friday, Canaccord Genuity maintained a Buy rating on the stock with a price target of $125, reaffirming its earlier revision on February 24, when it lifted the price target from $120 after the company beat estimates for Q4 and provided upbeat guidance for fiscal 2026.

Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) develops and fields transformative, affordable products and platforms to meet national security needs.