10 Best Military Drone Stocks to Buy Now

2. RTX Corporation (NYSE:RTX)

Number of Hedge Fund Holders: 80

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.

The company holds immense relevance in the UAV segment due to its focus on drone-based missile systems and counter-drone technologies. RTX Corporation (NYSE:RTX)’s expertise in radars, sensors, and electronic warfare offerings also makes it an important player in the global drone market.

According to media reports this week, RTX Corporation (NYSE:RTX)’s Raytheon business has signed a strategic agreement with the United Arab Emirates’ defense and security acquisitions authority, Tawazun Council, to locally produce the Coyote counter-drone system in the Middle Eastern country.

The Coyote effector is a low-cost, rail-launched missile variant, featuring a boost rocket motor and a high-speed turbine engine that enable it to defeat both small to large unmanned aerial systems, as well as swarms of drones of varying sizes. The Coyotes are paired with Raytheon’s Ku-band Radio Frequency Sensor, which provides them with detection and defeat capabilities.

RTX Corporation (NYSE:RTX) recently declared strong financial results for the first quarter of fiscal 2025. It reported sales of $20.3 billion, up 5% year-over-year. Adjusted EPS was logged at $1.47, beating estimates by 12 cents and 10% higher than the prior year.

Following the announcement, UBS raised its price target for the stock to $138 from $133. Wall Street analysts have a consensus Buy rating for RTX Corporation (NYSE:RTX), with an average share price upside potential of 12.50%, making it one of the best drone stocks to buy.