This article looks at the 9 Best Drone Stocks to Buy According to Wall Street Analysts.
Modern conflicts are rapidly evolving and forcing governments to rethink their security policies. Drones and loitering munitions have been a noticeable feature in conflicts this decade.
Militaries are actively adopting this agile technology due to its cost advantage, ability to cut dependence on ground troops, and carry out complex operations that exceed the capabilities of traditional aircraft.
Swarms of drones launched by Iran against Gulf states in the recent war were foiled by multimillion-dollar interceptors, evoking a debate on the need to have cheaper alternatives to counter the emerging threat from drones.
Mike Brown, partner at Shield Capital, while talking to CNBC in March, said that the world had become more dangerous, with technologies that were on the drawing board some years back now having demonstrated their capabilities during recent conflicts.
Last month, Bloomberg quoted a Pentagon official as saying that the Army was looking to secure a long-term agreement with RTX Corp to ensure a steady supply of the defense contractor’s Coyote drone interceptors.
While the details are still being finalized, the official said funding would likely be requested in fiscal 2027 for a framework agreement and a multi-year contract.
Tom Karako, missile defense analyst at the Center for Strategic and International Studies, was quoted as saying the following on the development:
“It’s just not true that we are having to use $4 million interceptors to shoot down drones. There’s packs of Coyotes out there in the field, and they’re taking out threats right and left, but there needs to be a lot more.”
With that said, let’s now head over to the list of the best drone stocks to buy according to Wall Street analysts.
Methodology
We reviewed ETF holdings with exposure to military drones, as well as our previous articles on the subject. Both pure-play military drone makers and companies with drone programs were included in our pool. From there, we selected the top stocks with the highest average share price upside potential as of the close on Friday, May 8, 2026, and ranked them in ascending order. Additionally, we also included data on hedge fund holdings in these companies as of Q4 2025 to provide further insight into investor interest.
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).
9 Best Drone Stocks to Buy According to Wall Street Analysts
9. Honeywell International Inc. (NASDAQ:HON)
Share Price Upside: 20%
Number of Hedge Fund Holders: 79
Honeywell International Inc. (NASDAQ:HON) is among the 9 Best Drone Stocks to Buy According to Wall Street Analysts. As of the close of business on May 8, the stock is a Moderate Buy, with an average share price upside potential of 20%.
On April 27, RBC Capital maintained its Outperform rating on the stock with a share price target of $268. This was a reaffirmation of the firm’s previous update in January and followed the company’s recent announcement of first-quarter 2026 financial results.
Honeywell International Inc. (NASDAQ:HON) reported sales of $9.14 billion for Q1, increasing 2% year-over-year, but missing estimates of $9.31 billion. Earnings per share crashed 35% from the prior year to $1.29 due to higher restructuring costs.
While the company reaffirmed its full-year outlook for 2026, it projected Q2 revenue below Wall Street’s forecasts, due to the adverse impact of the Middle East conflict on its business.
Following the results, several other firms, including TD Cowen, Barclays, and Citigroup, also trimmed their price targets on the stock, while keeping their bullish outlook for the company.
In other news, on April 27, the industrial giant declared a quarterly dividend of $1.19 per share on common stock. The payment is scheduled for June 5 to all shareholders on record as of the close on May 15.
Honeywell International Inc. (NASDAQ:HON) is an integrated operating company serving a range of industries by delivering actionable solutions to address complex challenges in aviation, automation, and process technology.
8. RTX Corporation (NYSE:RTX)
Share Price Upside: 26%
Number of Hedge Fund Holders: 79
RTX Corporation (NYSE:RTX) is among the 9 Best Drone Stocks to Buy According to Wall Street Analysts. On May 6, the company announced that its Raytheon business had received an order for 120 SharpSight radars from Blue Raven.
This marks the largest order so far for the multi-domain surveillance radar, which is used by both manned and autonomous systems for vital operations such as border security and monitoring, search and rescue, anti-surface warfare, and long-range surveillance.
According to the press release, RTX Corporation (NYSE:RTX) will manufacture and sustain the radar under the terms of the agreement, while Blue Raven will be responsible for global resale and distribution. The collaboration between the two companies is expected to expand the system’s availability to customers globally.
In other news, the aerospace and defense company said last week that AirAsia had ordered 150 Airbus A220 aircraft, which will be powered by Pratt & Whitney GTF engines. The agreement also includes a 12-year engine maintenance agreement with the airline.
Wall Street continues to rate RTX a Moderate Buy, based on 15 analysts’ recommendations, as of the close of business on May 8. The stock has an average share price upside potential of 26%.
RTX Corporation (NYSE:RTX) is a giant in the global aerospace and defense industry, providing systems and services to commercial, military, and government clients. It operates through three main businesses: Collins Aerospace, Pratt & Whitney, and Raytheon.
