10 Best Military Drone Stocks to Buy Now

8. AeroVironment, Inc. (NASDAQ:AVAV)

Number of Hedge Fund Holders: 24

AeroVironment, Inc. (NASDAQ:AVAV) designs and manufactures unmanned aerial vehicles, ground robot systems, and loitering munition systems. It is one of the best drone stocks to buy right now, with the stock having returns of over 15% in the past month on the back of several positive recent developments.

On April 21, AeroVironment, Inc. (NASDAQ:AVAV) announced securing a $47 million contract from the Italian Ministry of Defence for its JUMP 20 VTOL medium uncrewed aircraft system (MUAS). The contract will run for five years and will include the procurement of these drones, engineering services, initial sustainment, and onsite support. JUMP 20 is a fixed-wing UAS, designed for advanced ISR missions. It boasts 30 pounds of payload capacity, an operational range of 185 km, and flight endurance of over 13 hours.

Earlier in the month, AeroVironment, Inc. (NASDAQ:AVAV)’s stockholders approved the acquisition of BlueHalo LLC, a leading space and defense engineering company. The transaction is expected to help AVAV further expand its portfolio amid ongoing geopolitical tensions in different parts of the world.

Wall Street analysts are bullish on AeroVironment, Inc. (NASDAQ:AVAV) with a consensus Buy rating and an average share price upside potential of 36%. Their optimism around the stock stems from the company’s recent strategic initiatives like the BlueHalo acquisition and its current position in the sector, with America’s defense spending expected to increase ahead.

According to Insider Monkey’s database for Q4 2024, 24 hedge funds held a stake in the company, improving from 22 at the end of the third quarter. Heard Capital was the largest investor in AeroVironment, Inc. (NASDAQ:AVAV), with holdings of over $115 million as of December 31, 2024.