10 Best Military Drone Stocks to Buy Now

4. Lockheed Martin Corporation (NYSE:LMT)

Number of Hedge Fund Holders: 65

Lockheed Martin Corporation (NYSE:LMT) specializes in the research, design, and development of advanced technology systems, products, and services. While the company is famed for producing some of the most notable military aircraft in history, including the F-35, it also delivers advanced autonomous solutions to the US military to meet the needs of its most demanding missions.

Some of the most prominent UAVs manufactured by Lockheed Martin Corporation (NYSE:LMT) include the RQ-170 Sentinel, Stalker, and Indago 4. The defense contractor continues to invest heavily in autonomy and AI. It has demonstrated its capabilities in crewed-uncrewed teaming, AI-driven autonomous systems, and integrated technologies at numerous recent US Army events.

The stock plunged nearly 25% over the last six months due to heavy losses in certain classified programs, a delay in the rollout of upgrades for the F-35, and losing out to Boeing on the F-47 program. However, the recent announcement of robust financial results for the first quarter of fiscal 2025 is likely to woo investors back into buying Lockheed Martin Corporation (NYSE:LMT).

The company reported sales of $18 billion for Q1, up 4% from last year, due to a surge in demand for weapons from ongoing conflicts in Ukraine and the Middle East. Net earnings were posted at $1.7 billion, with EPS of $7.28, beating estimates of $6.34 per share. Lockheed Martin Corporation (NYSE:LMT) generated a free cash flow of $955 million during the quarter and returned $1.5 billion to shareholders through dividends and share repurchases.

According to Insider Monkey’s database for Q4 2024, 65 hedge funds held a stake in Lockheed Martin Corporation (NYSE:LMT), improving from 58 at the end of the third quarter. It is one of the best drone stocks to buy now.