8 Best Drone Stocks to Buy Now

5. Northrop Grumman Corporation (NYSE:NOC)

Number of Hedge Fund Holders: 39

Northrop Grumman Corporation (NYSE:NOC) is a leading multinational aerospace and defense technology company. With a workforce of 95,000 and an annual revenue exceeding $30 billion, it is one of the world’s top manufacturers of weaponry and military technology, as well as one of the best drone stocks available.

The company recently caught the aviation industry’s attention on account of its unpiloted stealth RQ-180 drone, which the company claims is “invisible to enemy radars, infrared sensors, and acoustic detectors,” and capable of flying at high altitudes and long ranges. According to a report from The Telegraph, the RQ-180 stealth drone could potentially add up to $100 billion to the $200 billion B-21 bomber contract that Northrop Grumman secured in 2015.

On the other hand, Northrop Grumman Corporation (NYSE:NOC) has received mixed analyst sentiments, with Jefferies recently lowering its price target to $500 from $530 while maintaining a Hold rating on the defense contractor’s shares. This adjustment follows a visit to Northrop’s facilities in Palmdale, California, where management provided insights into their operations. Jefferies highlighted several key observations from the tour, noting that Northrop Grumman’s Aeronautics segment is projected to achieve a 5% compound annual growth rate through 2026, based on their estimates.

According to Insider Monkey’s first-quarter database, 39 hedge funds were bullish on Northrop Grumman Corporation (NYSE: NOC), down from 45 in the previous quarter. A notable stakeholder is Donald Yacktman’s Yacktman Asset Management, which holds 387,219 shares valued at $185.3 million.