We recently released a list Buy 10 Best Military Drone Stocks Now. In this article, we will explore the position of Honeywell International (NASDAQ:HON) with other best drone stock representatives.
Modern warfare is rapidly developing into the only realm of soldiers, tanks and warriors. Under the guidance of artificial intelligence, the drone swarm now fills the sky and can accurately hit enemy targets. Revolutions in war blurred the line between humans and machines, resulting in the need to reassess the military capabilities.
Please read also: The 10 countries with the largest number of military drones in the world and Goldman Sachs Defense Stock: Top 12 Stock Picks.
In the past few years, demand for drones has surged, and the state actively uses drones for intelligence, reconnaissance, surveillance and target operations. These aero vehicles provide bird vision on the battlefield, making it difficult for targets to move from conflict zones and hide.
Drones are an important feature of the conflict in the Nagorno-Karabakh region between Azerbaijan and Armenia in 2020. During the Russian-Ukrainian War, they had been casting shadows in the sky of several towns and cities during the Ukrainian War, which defense experts believe is a new threat to come in the air defense space.
The United States has deployed drones for the first time during World War II and recently in wars in Afghanistan and Iraq, and has been operating for about a century. In 2023, the Ministry of Defense (Defense) announced the Replicator, an initiative aimed at building a "attractive autonomous system" for the masses over the next 18-24 months. Additionally, the Air Force is developing UAV wingers to fly with its fighter and bomber aircraft and under the Cooperative Fighter (CCA) program. The first two CCA fighters were unveiled in March this year.
But defense experts see the proliferation of drones as a security threat, with U.S. military increasingly attacked by actors from Middle East and African countries. Washington policymakers also fear that China has taken a leaf from the Kremlin’s book (The Ukrainian War) and launched a similar strike that violated U.S. interests in the Pacific.
Guarding the country from threats made by unmanned institutions, many jobs are guarding the country. In October 2024, the Department of Defense signed a $250 million contract with Anduril Industries to resist drone attacks against U.S. troops. Under the contract, the United States will receive 500 recyclable Roadrunner interceptors, reusable drones that can intercept incoming drones or drop onto the ground without engagement.
That being said, let's get on the list of the best drone stocks to buy.
We sampled stocks from ETFs to get in touch with military drones and our previous articles on the topic. Our pools include purebred military drone manufacturers and defense contractors. From there, we selected 10 stocks with the largest number of hedge fund investors as of the fourth quarter of 2024, according to Insider Monkey's database.
Why are we interested in stocks that hedge funds to accumulate? The reason is simple: Our research shows that we can beat the market by mimicking the top stocks of the best hedge funds. Our strategy for quarterly newsletters selects 14 small and large stocks every quarter, returning 373.4% since May 2014, beating its benchmark by 218 percentage points (See more details here).
Number of hedge fund holders: 67
Honeywell International Inc. (NASDAQ:HON) is an integrated operation company that helps organizations solve their most complex challenges in aviation, automation and energy transitions. The company is an important player in the military drone market.
In October 2024, Honeywell International Inc. (NASDAQ: HON) worked with Merlin Labs to bring autonomy to various aircraft, including the military. Under the agreement, Honeywell's National Anthem's Advanced Avionics suite will be integrated with Merlin's non-human pilot system to reduce pilot workload during special missions.
Late last year, Honeywell International (NASDAQ:HON) also announced a strategic partnership with near-Earth autonomy to support the autonomous rotation plan. The two companies will initially work with Leonardo to become competitors to the US Marine Corps (USMC) Air Logistics Connector (ALC) prototype program.
On February 26, Honeywell International Inc. (NASDAQ:HON) announced the purpose of separating automation and aerospace technology, in addition to announcing plans to rotate advanced materials. The change is expected to be completed in the second half of 2026 and will lead to three publicly listed companies with different growth momentums and strategies.
According to Insider Monkey's 4-quarter 2024 database, 67 hedge funds hold stakes in Honeywell International Inc. (NASDAQ:HON), making it one of the best drone stocks to buy.
Overall, Hon Ranked third 10 Best Military Drone Stakes to Buy Now. While we acknowledge the potential of drone companies, our belief is that AI stocks have greater hope and can deliver higher returns in a shorter time frame. AI stocks have risen since the beginning of 2025, while popular AI stocks have lost about 25%. If you are looking for more promising AI stocks than HON, but their earnings are trading at less than 5 times the price, check out our report Cheapest AI stocks.
Read the next article: Buy 20 Best AI Stocks Now and According to the billionaire, there are now 30 best stocks
Disclosure: None. This article was originally published in Internal monkey.