5 Best Drone Stocks to Invest In

In this article, we discuss the 5 best drone stocks to invest in. If you want to read our detailed analysis of these stocks, go directly to the 10 Best Drone Stocks to Invest In.

5. Northrop Grumman Corporation (NYSE: NOC)

Number of Hedge Fund Holders: 40

Northrop Grumman Corporation (NYSE: NOC) is an aerospace and defense company working internationally. The company offers products to the US military and civilian agency customers and ranks 5th on our list of the best drone stocks to invest in.

This April, Northrop Grumman Corporation (NYSE: NOC) acquired a roughly $959.1 million firm-fixed-price contract. The contract is to produce common infrared countermeasures for the US Army Contracting Command, Redstone Arsenal, Alabama. The company also released its first-quarter financial reports, showing that it beat the EPS estimate of $5.48 with their $6.57 EPS that quarter. Revenue for the first quarter was valued at $9.16 billion, demonstrating an 8.94% growth year over year. The stock gained 21.63% in the past 6 months and 25.08% year to date.

As of the end of the first quarter this year, 40 hedge funds out of the 866 tracked by Insider Monkey held stakes in Northrop Grumman Corporation (NYSE: NOC), worth roughly $1.51 billion. This is compared to 40 hedge fund holders in the previous quarter, with a lower stake value of roughly $1.5 billion.

Artisan Partners Limited Partnership, a high value-added investment management firm, mentioned Northrop Grumman Corporation (NYSE: NOC) in its fourth-quarter 2020 investor letter. Here’s what they said:

“New purchases include Northrop Grumman. Northrop Grumman is a leader in manned aircraft, unmanned aircraft, spacecraft and missile-defense systems. We initiated a position in November 2020, as we believe the name is trading at an undeserved discount, despite having the potential to accelerate revenue over the next 24 months. In 2020, Northrup signed a contract to work with the US Air Force on their Ground Based Strategic Deterrent (GBSD) and B21 bomber. We believe the company’s portfolio is well-positioned with a highly desirable space segment business, significant classified content and GBSD driving growth. While the market has been focused on a “blue wave” risk to the defense budget, the industry is typically driven by threat assessment rather than budget constraints. If budget cuts were ever to affect the US Army, that customer represents less than 10% of the company’s revenue. This reinforces our belief that Northrop is well-positioned for the future and trades at an attractive valuation.”

4. Lockheed Martin Corporation (NYSE: LMT)

Number of Hedge Fund Holders: 50

Lockheed Martin Corporation (NYSE: LMT) is a security and aerospace company. It operates internationally and researches on and develops technology systems and products. Their Aeronautics segment is responsible for offering unmanned air vehicles and related technologies. The company ranks 4th on our list of the best drone stocks to invest in.

On June 4th, Lockheed Martin Corporation (NYSE: LMT) secured a $1.01 billion contract for Space-Based Infrared Surveillance contractor logistics support alongside a $172.36 million army modification contract. Later on June 8th, the company also brought in another contract for $137.7 million to provide support, program management, and training in support, among other services for Naval Air Systems Command. Finally, on June 16th, Lockheed Martin Corporation (NYSE: LMT) bagged another deal for $191 million to provide strategic weapons systems for ballistic missile programs to the US and UK.

In the company’s first-quarter reports, it was observed that they beat EPS estimates of $6.31 with their $6.56 EPS and raked in $16.26 billion in revenue for that quarter, demonstrating a 7.98% growth year over year for the latter.

As of the end of the first quarter this year, 50 hedge funds out of the 866 tracked by Insider Monkey held stakes in Lockheed Martin Corporation (NYSE: LMT), worth roughly $2.3 billion. This is compared to 53 hedge fund holders in the previous quarter, with a stake value of roughly $2.5 billion.

RiverPark Advisors, LLC, in its fourth-quarter 2020 investor letter, mentioned Lockheed Martin Corporation (NYSE: LMT). Here’s what they said:

“Despite better-than-expected third quarter results, LMT shares were weak for the quarter as defense spending is expected to be flat for the coming year. With a record $150 billion backlog and almost 30% of its revenue coming from building F-35 aircraft with deliveries forecast to reach 180 per year in 4-5 years (3Q’s revenue upside was from the F-35), we believe LMT should grow at a higher rate than overall defense budget growth and Street expectations over the next several years. Further, strategic acquisitions (LMT acquired AJRD for $4 billion in late December), debt pay down, a 3% dividend yield, and continued share buybacks from $6 billion per year of free cash flow should lead to even greater shareholder returns.”

3. The Boeing Company (NYSE: BA)

Number of Hedge Fund Holders: 59

The Boeing Company (NYSE: BA) manufactures and supports commercial jetliners, military aircraft, satellites, and drones, among other products and alongside providing other services. The company operates internationally, and its Defense, Space & Security segment is indulged primarily in the research and development of manned and unmanned military aircraft and weapons systems. The company ranks 3rd on our list of the best drone stocks to invest in.

The Boeing Company (NYSE: BA) announced in its first-quarter report that the company had -$1.59 in EPS versus the -$1.09 estimate for the quarter. First-quarter revenue stood at $15.22 billion, and the company also gained 8.86% in the past 6 months and 18.01% year to date.

As of the end of the first quarter this year, 59 hedge funds out of the 866 tracked by Insider Monkey held stakes in The Boeing Company (NYSE: BA), worth roughly $1.44 billion. This is compared to 55 hedge fund holders in the previous quarter, with a lower stake value of roughly $1.05 billion.