Drone stocks are drawing more attention from long-term investors. Defense spending is shifting toward cheaper, faster, and more autonomous military systems, and drones are at the center of that shift.
The war in Ukraine and rising geopolitical tensions have changed how governments think about battlefield technology. Drones are now used for surveillance, targeting, logistics, and combat, not just as support tools.
Five names stand out for investors considering this space: AeroVironment, Kratos Defense & Security Solutions, Red Cat Holdings, Ondas Holdings, and Northrop Grumman.
AeroVironment is widely seen as the clearest drone stock for long-term investors.
The company makes unmanned aircraft systems, loitering munitions, and battlefield surveillance drones. Its products serve military customers, giving it direct exposure to demand for smaller and more flexible defense platforms.
AeroVironment has real scale compared with many smaller drone companies. That matters in an increasingly competitive market where production capacity and military relationships count.
Analysts are broadly positive. MarketBeat lists AeroVironment with a Moderate Buy rating, based on 2 Strong Buy, 18 Buy, 3 Hold, and 1 Sell ratings. The average price target is $318.78.
Kratos is another long-term drone stock worth watching, with a focus on unmanned systems, tactical aircraft, and hypersonics.
Kratos Defense & Security Solutions, Inc., KTOS
It is not a pure drone company, which some see as an advantage. Its wider defense business may offer more stability than smaller drone-only names.
Kratos recently raised its fiscal 2026 guidance. The company reported Q1 2026 revenue growth and adjusted earnings of $0.16 per share, which helped lift its full-year outlook.
Wall Street is supportive. MarketBeat gives Kratos a Moderate Buy rating, based on 3 Strong Buy, 15 Buy, and 5 Hold ratings. The average price target is $96.28.
Red Cat Holdings is one of the more speculative names in the drone sector, but it has a clear tactical drone story.
The company focuses on small unmanned systems for military, government, and security customers. That puts it in one of the fastest-growing parts of the market: low-cost, field-ready drones.
Revenue growth has been strong, but the business remains smaller and more volatile than AeroVironment or Kratos.
Analyst coverage is positive but comes with caveats. MarketBeat gives Red Cat a Buy rating, based on 2 Strong Buy, 3 Buy, and 1 Sell rating. The average price target is $20.50.
Ondas Holdings has become one of the more talked-about names in the drone space after reporting sharp revenue growth.
The company is tied to autonomous drone platforms, private wireless systems, and defense applications. It recently reported a major revenue surge and a growing order backlog.
Profitability remains a question. The company still needs to show that recent growth can translate into lasting positive earnings.
Analysts are moderately positive. MarketBeat lists Ondas with a Moderate Buy rating, based on 1 Strong Buy, 6 Buy, 1 Hold, and 1 Sell rating. The average price target is $17.25.
Northrop Grumman is not a pure drone stock, but it is the most conservative way to get drone exposure within a major defense contractor.
The company has positions in unmanned aircraft, surveillance systems, space, and missile defense. Its size, cash flow, and long-standing government relationships make it less volatile than smaller drone names.
MarketBeat gives Northrop a Moderate Buy rating, based on 2 Strong Buy, 11 Buy, and 7 Hold ratings. The average price target is $702.63.
Drone stocks offer long-term potential as governments continue to invest in cheaper and more autonomous military platforms.
AeroVironment stands out as the best pure-play option. Kratos offers broader defense tech exposure with recent earnings momentum. Red Cat and Ondas carry more risk but also more upside potential. Northrop Grumman provides a steadier, large-cap route into the theme.
For long-term investors, watching AeroVironment and Kratos first, then treating Red Cat and Ondas as speculative positions, with Northrop as a defensive anchor, may be the most balanced approach.
The post Best Drone Stocks To Buy in 2026: AeroVironment, Kratos and Ondas Top the List appeared first on CoinCentral.
