{"id":4505,"date":"2026-05-29T09:05:58","date_gmt":"2026-05-29T09:05:58","guid":{"rendered":"https:\/\/www.finznest.com\/blog\/3-drone-stocks-to-watch-as-the-sector-surges-on-trump-era-funding-hopes\/"},"modified":"2026-05-29T09:05:58","modified_gmt":"2026-05-29T09:05:58","slug":"3-drone-stocks-to-watch-as-the-sector-surges-on-trump-era-funding-hopes","status":"publish","type":"post","link":"https:\/\/www.finznest.com\/blog\/3-drone-stocks-to-watch-as-the-sector-surges-on-trump-era-funding-hopes\/","title":{"rendered":"3 Drone Stocks to Watch as the Sector Surges on Trump-Era Funding Hopes"},"content":{"rendered":"<div>\n<ul type=\"disc\">\n<li>The drone sector is experiencing renewed momentum as investors anticipate a significant shift in defense priorities under the Trump administration.<\/li>\n<li>Kratos Defense, Ondas, and Red Cat have emerged as the sector\u2019s most explosive names.<\/li>\n<li>With analyst price targets implying robust double-digit upside, these companies are suddenly at the center of one of the market\u2019s hottest stories.<\/li>\n<\/ul>\n<p>The US drone sector is experiencing renewed momentum as reports indicate the Trump administration is considering direct financial support for domestic drone makers, potentially including government equity stakes. This potential support has investors eyeing companies positioned to benefit from increased government contracts and policy tailwinds favoring American-made technology.<\/p>\n<p>Among the standout names gaining attention are Kratos Defense &amp; Security Solutions (NASDAQ:), Ondas Holdings (NASDAQ:), and Red Cat Holdings (NASDAQ:). Each offers unique strengths in defense and autonomous applications that could drive substantial upside in the current environment.<\/p>\n<h2><strong>1. <\/strong><strong>Kratos Defense<\/strong><\/h2>\n<p>Kratos Defense stands out as a more established player in the unmanned aerial systems space, known for its work on high-performance drone targets, tactical unmanned aircraft, and collaborative combat aircraft concepts often described as loyal wingmen for fighter jets like the F-35.<\/p>\n<p>The company\u2019s focus on affordable, attritable systems aligns well with Pentagon priorities for scalable drone fleets, making it a natural beneficiary of any ramp-up in defense spending.<\/p>\n<p><em>Source: InvestingPro<\/em><\/p>\n<p>Despite a -14.1% year-to-date return, analysts are notably bullish on KTOS, with an average 12-month price target of $113.05, representing a 73.4% potential upside from current levels, while the high target of $150 suggests even more dramatic gains if government funding materializes.<\/p>\n<h2><strong>2. <\/strong><strong>Ondas<\/strong><\/h2>\n<p>Ondas, a specialist in autonomous drone and security systems, is a more under\u2011the\u2011radar play, but one that could benefit meaningfully from increased spending on critical infrastructure, security, and autonomous systems. Its technology supports beyond-visual-line-of-sight operations and counter-drone capabilities, areas that are increasingly critical for both military and homeland security needs.<\/p>\n<p>The company differentiates itself with a strong emphasis on scalable, AI-enabled solutions that can integrate into existing infrastructure, positioning it favorably for funding initiatives aimed at rapid domestic capability building.<img decoding=\"async\" title=\"Ondas Stock Forecast and Price Target\" src=\"https:\/\/d1-invdn-com.investing.com\/content\/pic277295f01988986c1e4eed5bc4ac3eeb.png\" alt=\"Ondas Stock Forecast and Price Target\" align=\"bottom\" border=\"0\"\/><\/p>\n<p><em>Source: InvestingPro<\/em><\/p>\n<p>ONDS stock has shown impressive resilience and growth, posting a year-to-date gain of around 36% amid sector enthusiasm. With analysts projecting an average price target near $20, the implied upside exceeds 50%, highlighting significant rerating potential as contracts materialize.<\/p>\n<h2><strong>3. <\/strong><strong>Red Cat<\/strong><\/h2>\n<p>Red Cat rounds out the trio with its focus on small tactical drones tailored for reconnaissance, first-person view systems, and soldier-worn applications, including models like the TEAL 2 that have earned Blue UAS certification for defense use.<\/p>\n<p>As one of the few publicly traded American manufacturers specifically focused on military-grade small drones, Red Cat is uniquely positioned to benefit from potential &#8220;Buy American&#8221; mandates and Department of Defense initiatives. The company stands out for its agility as a smaller-cap innovator with direct ties to U.S. Army and special operations programs.<img decoding=\"async\" title=\"Red Cat Holdings Stock Forecast and Price Target\" src=\"https:\/\/d1-invdn-com.investing.com\/content\/pic13086ecc79ec6acd45d036650ae7711b.png\" alt=\"Red Cat Holdings Stock Forecast and Price Target\" align=\"bottom\" border=\"0\"\/><\/p>\n<p><em>Source: InvestingPro<\/em><\/p>\n<p>Shares have advanced about 78% year-to-date, reflecting building momentum. Analysts maintain a strong buy consensus with an average target of $21.75, suggesting around 53% potential upside as government backing materializes.<\/p>\n<h2><strong>Bottom Line<\/strong><\/h2>\n<p>As the drone sector enters a new era of government support and global demand, KTOS, ONDS, and RCAT stand out for their innovation, growth, and massive price target upside. Investors should watch these names closely as the next leg up could be just a funding announcement away.<\/p>\n<p>As always, be sure to check out InvestingPro to stay in sync with the market trend and what it means for your trading.<\/p>\n<p>\u00a0<\/p>\n<div style=\"border: 2px solid #ff7f00; background-color: #fff4e6; padding: 15px; border-radius: 8px; font-family: Arial, sans-serif; color: #1a1a1a;\">\n<h3 style=\"color: #ff7f00; margin-top: 0px; font-size: 22px; font-weight: bold; letter-spacing: 0.5px;\"><strong>Below are the key ways an InvestingPro subscription can enhance your stock market investing performance:<\/strong><\/h3>\n<ul style=\"list-style-type: none;\">\n<li><strong>ProPicks AI<\/strong>: AI-managed stock picks every month, with several picks that have already taken off this month and in the long term.<\/li>\n<li><strong>Warren AI:<\/strong> Investing.com\u2019s AI tool provides real-time market insights, advanced chart analysis, and personalized trading data to help traders make quick, data-driven decisions.<\/li>\n<li><strong>Fair Value<\/strong>: This feature aggregates 17 institutional-grade valuation models to cut through the noise and show you which stocks are overhyped, undervalued, or fairly priced.<\/li>\n<li>\n<p><strong>1,200+ Financial Metrics at Your Fingertips: <\/strong>From debt ratios and profitability to analyst earnings revisions, you\u2019ll have everything professional investors use to analyze stocks in one clean dashboard.<\/p>\n<\/li>\n<li>\n<p><strong>Institutional-Grade News &amp; Market Insights: <\/strong>Stay ahead of market moves with exclusive headlines and data-driven analysis.<\/p>\n<\/li>\n<li>\n<p><strong>A Distraction-Free Research Experience: <\/strong>No pop-ups. No clutter. No ads. Just streamlined tools built for smart decision-making.<\/p>\n<\/li>\n<li>\n<div id=\"message-list_1773663112.015449\" aria-setsize=\"-1\">\n<div>\n<div aria-roledescription=\"message\">\n<div>\n<div>\n<div>\n<div>\n<div>\n<div>\n<div>\n<div>\n<p><strong>Vision AI:<\/strong> InvestingPro\u2019s newest addition. It analyzes any asset\u2019s chart with professional-grade market intelligence, identifying key timeframes, technical patterns, and indicators \u2014 then delivers a clear trading playbook with the levels, scenarios, and risks that matter most in under a minute.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/li>\n<\/ul>\n<p><strong>Not a Pro member yet? <\/strong><\/p>\n<\/div>\n<p><strong><em>Disclosure: <\/em><\/strong><strong><em>This is not financial advice. Always conduct your own research.<\/em><\/strong><\/p>\n<p><em>At the time of writing, I am long on the S&amp;P 500, and the Nasdaq 100 via the\u00a0SPDR\u00ae S&amp;P 500 ETF, and the Invesco QQQ Trust ETF. I am also long on the Technology Select Sector SPDR ETF. I regularly rebalance my portfolio of individual stocks and ETFs based on ongoing risk assessment of both the macroeconomic environment and companies\u2019 financials.<\/em><\/p>\n<p><em>The views discussed in this article are solely the opinion of the author and should not be taken as investment advice.<\/em><\/p>\n<p><em>Follow Jesse Cohen on X\/Twitter <\/em><a href=\"https:\/\/twitter.com\/JesseCohenInv\" rel=\"noopener nofollow\" target=\"_blank\"><em>@JesseCohenInv<\/em><\/a><em> for more stock market analysis and insight.<\/em><\/p>\n<\/div>\n<p><script async src=\"\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><script id=\"fb_pixel\" data-nscript=\"beforeInteractive\">!function(f,b,e,v,n,t,s){if(f.fbq)return;n=f.fbq=function(){n.callMethod? n.callMethod.apply(n,arguments):n.queue.push(arguments)};if(!f._fbq)f._fbq=n;n.push=n;n.loaded=!0;n.version='2.0';n.queue=[];t=b.createElement(e);t.async=!0;t.src=v;s=b.getElementsByTagName(e)[0];s.parentNode.insertBefore(t,s)}(window, document,'script','https:\/\/connect.facebook.net\/en_US\/fbevents.js');<\/script><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The drone sector is experiencing renewed momentum as investors anticipate a significant shift in defense priorities under the Trump administration. Kratos Defense, Ondas, and Red Cat have emerged as the sector\u2019s most explosive names. With analyst price targets implying robust double-digit upside, these companies are suddenly at the center of one of the market\u2019s hottest [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":4506,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[237,1161,494,3352,238,984,3353,672],"class_list":["post-4505","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog","tag-drone","tag-funding","tag-hopes","tag-sector","tag-stocks","tag-surges","tag-trumpera","tag-watch"],"_links":{"self":[{"href":"https:\/\/www.finznest.com\/blog\/wp-json\/wp\/v2\/posts\/4505","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.finznest.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.finznest.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.finznest.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.finznest.com\/blog\/wp-json\/wp\/v2\/comments?post=4505"}],"version-history":[{"count":0,"href":"https:\/\/www.finznest.com\/blog\/wp-json\/wp\/v2\/posts\/4505\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.finznest.com\/blog\/wp-json\/wp\/v2\/media\/4506"}],"wp:attachment":[{"href":"https:\/\/www.finznest.com\/blog\/wp-json\/wp\/v2\/media?parent=4505"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.finznest.com\/blog\/wp-json\/wp\/v2\/categories?post=4505"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.finznest.com\/blog\/wp-json\/wp\/v2\/tags?post=4505"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}