Best Drone Stocks
Best Drone Stocks
The global drone industry is gathering steam, and the drone-powered business solutions market is expected to rise from $17.9 billion in value in 2024 to $47.5 billion by 2030, according to ResearchAndMarkets.com. New growth in certain segments, such as agriculture, logistics, construction and mining, is adding to drones' relevance in industries like military and defense, public safety, cybersecurity, and transportation and delivery to give the market a big shot in the arm in 2025.
Spending is particularly high in the military, with the U.S. Department of Defense shifting $50 billion in funding into national security programs, which include drones and counter-drone systems. Additionally, there's an intense focus on specific technologies like Beyond Visual Line of Sight (BVLOS) operations, artificial intelligence and carbon emissions monitoring, which can involve drones.
With drone use on the upswing, which stocks should investors be tracking? These seven drone stocks top the list:
Drone Stocks1-Year Performance*
Amazon.com Inc. (ticker: AMZN)+6.2%
EHang Holdings Ltd. (EH)-2.8%
Kratos Defense & Security Solutions Inc. (KTOS)+59.6%
AeroVironment Inc. (AVAV)-18.5%
Boeing Co. (BA)-11.3%
Joby Aviation Inc. (JOBY)+15.4%
Northrop Grumman Corp. (NOC)+10.6%
Spending is particularly high in the military, with the U.S. Department of Defense shifting $50 billion in funding into national security programs, which include drones and counter-drone systems. Additionally, there's an intense focus on specific technologies like Beyond Visual Line of Sight (BVLOS) operations, artificial intelligence and carbon emissions monitoring, which can involve drones.
With drone use on the upswing, which stocks should investors be tracking? These seven drone stocks top the list:
Drone Stocks1-Year Performance*
Amazon.com Inc. (ticker: AMZN)+6.2%
EHang Holdings Ltd. (EH)-2.8%
Kratos Defense & Security Solutions Inc. (KTOS)+59.6%
AeroVironment Inc. (AVAV)-18.5%
Boeing Co. (BA)-11.3%
Joby Aviation Inc. (JOBY)+15.4%
Northrop Grumman Corp. (NOC)+10.6%
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Re: Best Drone Stocks
Amazon.com Inc. (AMZN)
Amazon's stock is down 12.4% year to date as of April 1 amid recent stock market volatility, and the company's drone operation faced strong headwinds when it had to shut down Prime Air delivery service in College Station, Texas, and Tolleson, Arizona, in January for a software update for the MK30 drone. As of press time there's been no word on when the sites will be back up and running. Amazon stated that it was hitting the pause button on testing at the two locations only temporarily and that company staffers have remained on site (and are being paid) during the suspension. "Our services will resume once these updates are completed and approved by the FAA," company spokesperson Sam Stephenson affirmed in a statement.
Amazon had better news regarding its new U.K. drone delivery expansion, choosing the Northern England town of Darlington as the site of its first in-country delivery operation.
Amazon's stock is down 12.4% year to date as of April 1 amid recent stock market volatility, and the company's drone operation faced strong headwinds when it had to shut down Prime Air delivery service in College Station, Texas, and Tolleson, Arizona, in January for a software update for the MK30 drone. As of press time there's been no word on when the sites will be back up and running. Amazon stated that it was hitting the pause button on testing at the two locations only temporarily and that company staffers have remained on site (and are being paid) during the suspension. "Our services will resume once these updates are completed and approved by the FAA," company spokesperson Sam Stephenson affirmed in a statement.
Amazon had better news regarding its new U.K. drone delivery expansion, choosing the Northern England town of Darlington as the site of its first in-country delivery operation.
Re: Best Drone Stocks
EHang Holdings Ltd. (EH)
This Guangzhou, China-based aerial vehicle technology platform company operates primarily in Asia, South America and Europe. At 11 years old, it is one of the newer drone companies on the rise in 2025. EHang shares have rebounded from a sluggish 2024, with EH stock up 26% in 2025.
CMB International Securities analyst Wayne Fung issued a "hold" on EH shares with a $30 target price (the stock is trading around $20 per share as of April 1). The analyst cited a 35% improvement in net income loss in the fourth quarter as well as the company's 97% revenue growth forecast for 2025. Meanwhile, EHang has gathered all the credentials it needs to start manufacturing vertical takeoff and landing eVTOL aircraft, making it the first Chinese company to do so. CMB notes that EHang is two years ahead of its closest Pacific Rim rivals.
In early January, Goldman Sachs also gave EH stock a "buy" rating, lending more credibility to the company's continuing efforts to sell its flagship EH216-S autonomous passenger drone. The company delivered 63 units in the third quarter of 2024, compared to five units in the second quarter of 2023. The company also expects stronger demand for its EH216-S drone in 2025.
This Guangzhou, China-based aerial vehicle technology platform company operates primarily in Asia, South America and Europe. At 11 years old, it is one of the newer drone companies on the rise in 2025. EHang shares have rebounded from a sluggish 2024, with EH stock up 26% in 2025.
CMB International Securities analyst Wayne Fung issued a "hold" on EH shares with a $30 target price (the stock is trading around $20 per share as of April 1). The analyst cited a 35% improvement in net income loss in the fourth quarter as well as the company's 97% revenue growth forecast for 2025. Meanwhile, EHang has gathered all the credentials it needs to start manufacturing vertical takeoff and landing eVTOL aircraft, making it the first Chinese company to do so. CMB notes that EHang is two years ahead of its closest Pacific Rim rivals.
In early January, Goldman Sachs also gave EH stock a "buy" rating, lending more credibility to the company's continuing efforts to sell its flagship EH216-S autonomous passenger drone. The company delivered 63 units in the third quarter of 2024, compared to five units in the second quarter of 2023. The company also expects stronger demand for its EH216-S drone in 2025.
Re: Best Drone Stocks
Kratos Defense & Security Solutions Inc. (KTOS)
Kratos has slowed somewhat in 2025, with shares up 11% year to date but down over the past few weeks. KTOS shares are up 60% over the past 12 months, though.
Kratos should be one company that survives the Defense Department budget ax, as Defense Secretary Pete Hegseth has called for multi-billions in spending cuts. Already in the works is Kratos' new five-year DOD pact worth $1.5 billion, representing the most significant contract in the company's history. The agreement covers work Kratos will provide in the Multi-Service Advanced Capability Hypersonic Test Bed, or MACH-TB, program, which is now prioritized by the Office of the Under Secretary of Defense for Research and Engineering Test Resource Management Center.
Industry analysts are bullish on the stock, with 69% of analysts tracked by FactSet issuing "buy" ratings on KTOS shares, with an average $31 price target, about where it's trading as of April 2.
Kratos has slowed somewhat in 2025, with shares up 11% year to date but down over the past few weeks. KTOS shares are up 60% over the past 12 months, though.
Kratos should be one company that survives the Defense Department budget ax, as Defense Secretary Pete Hegseth has called for multi-billions in spending cuts. Already in the works is Kratos' new five-year DOD pact worth $1.5 billion, representing the most significant contract in the company's history. The agreement covers work Kratos will provide in the Multi-Service Advanced Capability Hypersonic Test Bed, or MACH-TB, program, which is now prioritized by the Office of the Under Secretary of Defense for Research and Engineering Test Resource Management Center.
Industry analysts are bullish on the stock, with 69% of analysts tracked by FactSet issuing "buy" ratings on KTOS shares, with an average $31 price target, about where it's trading as of April 2.
Re: Best Drone Stocks
AeroVironment Inc. (AVAV)
This Arlington, Virginia-based drone and missile manufacturer is down 21% so far in 2025 and down 18% over the past year. The company made news earlier this month via its Telerob subsidiary, which landed a big contract with the German Federal Armed Forces to provide 41 uncrewed ground vehicles for ordnance disposal and anti-IED missions.
The company's Q3 performance was tepid, marked by a $3.1 million operating loss that was down from a $14.3 million profit in the prior year, the level where analysts expected the company to land in the recent quarter. Additionally, sales were down 10% for the quarter, to $167.6 million, against analyst expectations of $192 million. However, company officials cited the Southern California wildfires as one reason for the quarterly dip (AVAV has a big manufacturing facility in the region) and softer demand for guided bomb and munition systems in Ukraine.
Similar to KTOS, drone industry analysts are on board with AVAV. Ninety percent of analysts tracked by FactSet recommend a "buy" on AVAV shares, with a one-year consensus price target of $231. AVAV shares are currently trading at about $127 per share.
This Arlington, Virginia-based drone and missile manufacturer is down 21% so far in 2025 and down 18% over the past year. The company made news earlier this month via its Telerob subsidiary, which landed a big contract with the German Federal Armed Forces to provide 41 uncrewed ground vehicles for ordnance disposal and anti-IED missions.
The company's Q3 performance was tepid, marked by a $3.1 million operating loss that was down from a $14.3 million profit in the prior year, the level where analysts expected the company to land in the recent quarter. Additionally, sales were down 10% for the quarter, to $167.6 million, against analyst expectations of $192 million. However, company officials cited the Southern California wildfires as one reason for the quarterly dip (AVAV has a big manufacturing facility in the region) and softer demand for guided bomb and munition systems in Ukraine.
Similar to KTOS, drone industry analysts are on board with AVAV. Ninety percent of analysts tracked by FactSet recommend a "buy" on AVAV shares, with a one-year consensus price target of $231. AVAV shares are currently trading at about $127 per share.
Re: Best Drone Stocks
Boeing Co. (BA)
Boeing's shares are down 5% year to date. A federal judge decided on March 25 that Boeing will face trial in June on charges that the company deceived federal regulators about an important system on the company's 737 MAX aircraft; so, that won't help matters. Yet, the company bested rival Lockheed Martin Corp. (LMT) in landing a key contract in mid-March for the upcoming F-47 manned fighter jet program. The U.S. government's initial investment in the program is worth $20 billion, adding some much-needed financial support to Boeing's bottom line.
The aircraft manufacturing giant is also bouncing back in other key areas. The Japanese Ministry of Defense recently contracted with Boeing to test aerial drones for the country's emerging unmanned combat aircraft program. Boeing is also rolling out plans to expand production of its MQ-25 Stingray, an unmanned aerial refueling aircraft designed for the U.S. Navy, with proposals underway and contracts expected later in 2025. The company also has a $500 billion order backlog that, as long as all obligations are met, should lift the company's financial fortunes.
BA stock remains a "buy" for Barclays, and company analyst David E. Strauss maintained a $210 price target. The stock is trading at around $169 per share as of April 2.
Boeing's shares are down 5% year to date. A federal judge decided on March 25 that Boeing will face trial in June on charges that the company deceived federal regulators about an important system on the company's 737 MAX aircraft; so, that won't help matters. Yet, the company bested rival Lockheed Martin Corp. (LMT) in landing a key contract in mid-March for the upcoming F-47 manned fighter jet program. The U.S. government's initial investment in the program is worth $20 billion, adding some much-needed financial support to Boeing's bottom line.
The aircraft manufacturing giant is also bouncing back in other key areas. The Japanese Ministry of Defense recently contracted with Boeing to test aerial drones for the country's emerging unmanned combat aircraft program. Boeing is also rolling out plans to expand production of its MQ-25 Stingray, an unmanned aerial refueling aircraft designed for the U.S. Navy, with proposals underway and contracts expected later in 2025. The company also has a $500 billion order backlog that, as long as all obligations are met, should lift the company's financial fortunes.
BA stock remains a "buy" for Barclays, and company analyst David E. Strauss maintained a $210 price target. The stock is trading at around $169 per share as of April 2.
Re: Best Drone Stocks
Joby Aviation Inc. (JOBY)
Santa Cruz, California-based Joby develops all-electric vertical takeoff and landing aircraft (eVTOL) for commercial passengers. The company's stock has been primarily grounded in 2025, with shares down 27.1% year to date but up 15.4% over the past year as of the April 1 market close. A big part of the problem is burgeoning costs for key eVTOL issues, such as limited flight options and batteries. Those costs could make for pricier eVOTL passenger trips, which is not ideal for a new transportation option competing with ground-based, high-end ride-sharing services like Uber Black.
Joby does have a new partnership with Virgin Atlantic to roll out an electronic air taxi service in the U.K., and Joby management has said it's on pace to provide commercial passenger flights by late 2025. It has ample cash reserves of $933 million to keep the lights on until those flights are up and running.
Santa Cruz, California-based Joby develops all-electric vertical takeoff and landing aircraft (eVTOL) for commercial passengers. The company's stock has been primarily grounded in 2025, with shares down 27.1% year to date but up 15.4% over the past year as of the April 1 market close. A big part of the problem is burgeoning costs for key eVTOL issues, such as limited flight options and batteries. Those costs could make for pricier eVOTL passenger trips, which is not ideal for a new transportation option competing with ground-based, high-end ride-sharing services like Uber Black.
Joby does have a new partnership with Virgin Atlantic to roll out an electronic air taxi service in the U.K., and Joby management has said it's on pace to provide commercial passenger flights by late 2025. It has ample cash reserves of $933 million to keep the lights on until those flights are up and running.
Re: Best Drone Stocks
Northrop Grumman Corp. (NOC)
Falls Church, Virginia-based Northrop Grumman's share price is up 10.6% for the year, but company management has to be pleased with its Q4 performance figures, especially its $1.3 billion profit for the period, compared to a $535 million loss for the same quarter a year ago. Earnings clocked in at $8.66 per share, easily besting the consensus analyst estimate of $6.35 per share.
NOC also received mixed news from its recent sale of two MQ-4C Triton drones for a reported price of $267 million. On the surface, that's good news for the company and investors, but the original price set about 10 years ago was $30 million per drone, meaning prices have soared over the past decade for unmanned aerial vehicles. The hefty price tag has reportedly led the Pentagon to order Northrop to shutter the MQ-4C Triton project by 2028. That scenario, coupled with Northrop ending production of its Fire Scout drone helicopter and its RQ-4 Global Hawks, could conceivably put NOC out of the military drone business for good.
Given that NOC's B-21 stealth bomber program and its Sentinel GBSD high-tech integrated weapon system remain in high demand, Northrop Grumman's stock price should hold up fine – but it may not end up with much of a drone component when all's said and done.
Falls Church, Virginia-based Northrop Grumman's share price is up 10.6% for the year, but company management has to be pleased with its Q4 performance figures, especially its $1.3 billion profit for the period, compared to a $535 million loss for the same quarter a year ago. Earnings clocked in at $8.66 per share, easily besting the consensus analyst estimate of $6.35 per share.
NOC also received mixed news from its recent sale of two MQ-4C Triton drones for a reported price of $267 million. On the surface, that's good news for the company and investors, but the original price set about 10 years ago was $30 million per drone, meaning prices have soared over the past decade for unmanned aerial vehicles. The hefty price tag has reportedly led the Pentagon to order Northrop to shutter the MQ-4C Triton project by 2028. That scenario, coupled with Northrop ending production of its Fire Scout drone helicopter and its RQ-4 Global Hawks, could conceivably put NOC out of the military drone business for good.
Given that NOC's B-21 stealth bomber program and its Sentinel GBSD high-tech integrated weapon system remain in high demand, Northrop Grumman's stock price should hold up fine – but it may not end up with much of a drone component when all's said and done.