In this article, we discuss 5 best drone stocks to buy now. If you want to see more of the top companies dealing in drones, click 10 Best Drone Stocks To Buy Now.
5. The Boeing Company (NYSE:BA)
Number of Hedge Fund Holders: 50
The Boeing Company (NYSE:BA) was incorporated in 1916 and is based in Chicago, Illinois. The company manufactures and designs drones, commercial jetliners, military aircrafts, satellites, missile defense, and human space flight and launch systems.
On May 16, Cowen analyst Cai von Rumohr reiterated an Outperform rating and a $230 price target on The Boeing Company (NYSE:BA) shares, since he sees an upside potential for 2024 CFPS of $20. He sees a 7-to-1 risk/reward for the stock and estimates only about 12% downside to $112, which is tied to liquidity concerns that are unlikely to materialize. He said projected short-term catalysts are 737 inventory burndown, 787 deliveries, and a significant FCF lift in the second half 2022.
According to the fourth quarter database of Insider Monkey, 50 hedge funds were bullish on The Boeing Company (NYSE:BA), with collective stakes worth $1.10 billion. In Q1 2022, Jim Simons’ Renaissance Technologies held a prominent position in the company, with 707,200 shares valued at $135.4 million.
4. Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS)
Number of Hedge Fund Holders: 18
Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) is a California-based company that operates as a government contractor for the U.S. Department of Defense. The company manufactures jet-powered, unmanned aerial target drone systems leveraged in testing weapons and warfighter training. The company posted a Q1 EPS of $0.04, beating market predictions by $0.03.
On May 12, Baird analyst Peter Arment upgraded Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) to Outperform from Neutral with an unchanged price target of $20 after a “significant reset” in its stock price over the last 15 months. He sees an attractive buying opportunity in the shares.
According to the fourth quarter database of Insider Monkey, 18 hedge funds were bullish on Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS), compared to 15 funds in the last quarter. In Q1 2022, Cathie Wood’s ARK Investment Management held a notable stake in the company, worth $175.5 million.
3. Lockheed Martin Corporation (NYSE:LMT)
Number of Hedge Fund Holders: 42
Lockheed Martin Corporation (NYSE:LMT) is a Maryland-based security and aerospace company that operates through Aeronautics, Missiles and Fire Control, Rotary and Mission Systems, and Space segments. The company manufactures drones for intelligence, surveillance, and reconnaissance applications. On April 19, Lockheed Martin Corporation (NYSE:LMT) posted its Q1 results, announcing earnings per share of $6.44, topping analysts’ predictions by $0.26.
On April 20, Lockheed Martin Corporation (NYSE:LMT) declared a $2.80 per share quarterly dividend, in line with previous. The dividend is payable on June 24, to shareholders of record on June 1. Lockheed Martin Corporation (NYSE:LMT)’s dividend yield on May 16 came in at 2.57%.
Argus analyst John Eade on April 20 maintained a Buy recommendation on Lockheed Martin Corporation (NYSE:LMT) and raised the price target on the shares to $500 from $415. As per the analyst, Lockheed Martin Corporation (NYSE:LMT) has consistently delivered positive performance and financial results, regardless of the defense spending or which government resides in the White House. He further stated his “favorable view” of the company’s focus on international revenue diversification and expects the continuing geopolitical tension to enhance Lockheed Martin Corporation (NYSE:LMT)’s sales and earnings in the future.
According to Insider Monkey’s Q4 data, 42 hedge funds were bullish on Lockheed Martin Corporation (NYSE:LMT), compared to 51 funds in the last quarter. In Q1 2022, Rajiv Jain’s GQG Partners owned a notable stake in Lockheed Martin Corporation (NYSE:LMT), consisting of 1.72 million shares worth $763.2 million.
Here is what Vltava Fund has to say about Lockheed Martin Corporation (NYSE:LMT) in its Q4 2021 investor letter:
“Of course, not all of our companies are doing better than we expected. Lockheed Martin fell somewhat short of our expectations last year. In the cases of Lockheed disruptions in the supply and logistics chains. Lockheed uses a great many subcontractors from various countries and could not avoid issues with continuity of supplies. As a result, production will be slightly lower than we had expected.”
2. Drone Delivery Canada Corp. (OTC:TAKOF)
Number of Hedge Fund Holders: N/A
Drone Delivery Canada Corp. (OTC:TAKOF) operates a commercial drone-based logistics platform in Canada and internationally. The company specializes in industrial drones, automated DroneSpot depots, automated battery management systems, and software to integrate various components into governmental, commercial, and industrial applications.
On March 28, Canaccord analyst Doug Taylor reiterated a Hold rating on Drone Delivery Canada Corp. (OTC:TAKOF) and lowered the price target on the shares to C$0.70 from C$1.00.
1. Trimble Inc. (NASDAQ:TRMB)
Number of Hedge Fund Holders: 32
Trimble Inc. (NASDAQ:TRMB) is a California-based technology firm that enhances the performance of field mobile workers by transforming their work processes. Trimble Inc. (NASDAQ:TRMB)’s Stratus Software enables the use of drones to map, measure, and share accurate information about worksites and assets. In addition to adding efficacy to operations and growing profitability, Trimble Inc. (NASDAQ:TRMB) allows access to hazardous locations safely via a drone.
On May 5, Trimble Inc. (NASDAQ:TRMB) reported its Q1 results, posting earnings per share of $0.73, beating market consensus estimates by $0.06. Revenue for the period grew 12.07% year-over-year to about $994 million, outperforming analysts’ estimates by $26.45 million.
Baird analyst Richard Eastman on May 6 reiterated an Outperform rating on Trimble Inc. (NASDAQ:TRMB) and lowered the price target on the stock to $80 from $90. The analyst said the company’s Transportation revitalization still needs to mature, as growth and margin trail other segments, but Trimble Inc. (NASDAQ:TRMB)’s portfolio transformation has increased revenue stability in downturn scenarios, which led to his positive rating.
According to Insider Monkey’s fourth quarter database, 32 hedge funds were long Trimble Inc. (NASDAQ:TRMB), with collective stakes worth over $2 billion. In Q1 2022, David Blood and Al Gore’s Generation Investment Management reported owning a sizable position in Trimble Inc. (NASDAQ:TRMB), with 3.35 million shares worth $241.8 million.
You can also take a peek at 12 Best American Stocks To Buy in 2022 and 10 LNG Shipping Stocks to Buy Now.
