10 Best Military Drone Stocks to Buy Now

5. Northrop Grumman Corporation (NYSE:NOC)

Number of Hedge Fund Holders: 54

Northrop Grumman Corporation (NYSE:NOC) is one of the largest defense contractors in the world. The company is the manufacturer of the long-range, stealth strategic bomber, the B-21 Raider. It is also a leader in autonomous aerial systems and has developed notable military drones like the RQ-4 Global Hawk and MQ-4C Triton.

In March this year, Northrop Grumman Corporation (NYSE:NOC) was awarded a $267 million contract from the US Navy to produce two additional MQ-4C Triton drones, as part of the service’s plans to have a fleet of 27 of these UAVs to bolster ISR capabilities. Under the agreement, the company will also provide the Navy with a main operating base and support services.

Northrop Grumman Corporation (NYSE:NOC) is also working on a $387 million foreign military sales contract awarded by the DoD in April 2024 to sustain Italy, Japan, and South Korea’s RQ-4 Global Hawk drones. Moreover, the first of the four Tritons was delivered to Australia in June last year, with the second and third set for delivery later this year.

On April 22, Northrop Grumman Corporation (NYSE:NOC) reported results for the first quarter of fiscal 2025. It posted a revenue of $9.5 billion, down 7% year-over-year, due to several contracting delays and the timing of material receipts. Net earnings for the quarter totaled $481 million, or $3.32 per diluted share, falling sharply from $944 million, or $6.32 per diluted share, in Q1 2024.

The company’s shares have slumped following these results. Despite the setback, analysts have a consensus Buy rating for Northrop Grumman Corporation (NYSE:NOC) with a share price upside potential of 18%. Investor sentiment also remains strong. According to Insider Monkey’s database for Q4 2024, 54 hedge funds held a stake in the company. It is one of the best drone stocks to buy now.