Over the past decade, the value of drone stocks has rapidly surged. During this time, drones have become more closely integrated with critical services, including identifying military targets in Ukraine and mapping out routes for vehicle navigational systems, thanks to technological advancements.

As drones demonstrate their importance in various fields, drone stocks will only grow in value from here. Grand View Research’s report states that the commercial drone market will experience a global growth of 38.6% CAGR from 2023 to 2030. Such explosive growth merits attention, so we compiled this list of drone stocks to buy.

While many drone companies are out there, not all are created equal. Some drone stocks may be more promising than others based on revenue growth, market share, and technological innovation. Monitoring the drone stocks to watch allows for informed investment decisions and the potential to yield significant returns.

This article will examine three top drone stocks to watch for their potential for sky-high growth. These drone stocks have shown impressive performance and are poised for continued success in the future. Consequently, by investing in these drone stocks, you can get in on the ground floor of a booming industry and potentially profit from the growing demand for drone technology.

Northrop Grumman Corp. (NOC)

Focusing on the skies, Northrop Grumman (NYSE:NOC) is a contractor renowned for its signature bomber programs, which include the original stealth bomber and the upcoming B-21. The company also produces vital subsystems for numerous aircraft, including the F-35.

The B-21 program, with an $80 billion lifespan and the lead contractor role in the anticipated nine-figure overhaul of the nation’s aging intercontinental ballistic missile arsenal, is integral to Northrop Grumman’s portfolio.

Although regulators blocked the proposed sale of Northrop Grumman to Lockheed Martin in the late 1990s for anti-competitive reasons, the company has since discovered a clear mission. After a period of uncertainty, it has transformed into a powerhouse in air and space defense.

Goldman Sachs’ bearish comments in January, citing congressional Republicans’ inclination towards curbing defense spending in 2023, led to a significant decline in Northrop Grumman shares.

However, the company’s strong fourth-quarter numbers demonstrate its ability to accumulate cash, with adjusted earnings increasing by 25% compared to the previous year and sales surging by 16% to over $10 billion. The earnings set up the company nicely for 2023 and beyond.

Northrop Grumman is entering the drone technology market by developing autonomous HALE systems. The HALE systems are in full development mode and operate worldwide with over 24-hour endurance. According to the company, these systems collect essential air defense data over land and sea for informed decision-making.

Due to these exciting new developments and strong position, Northrop is a good prospect.

Boeing Co. (BA)

Boeing’s (NYSE:BA) commercial jet empire overshadows defense despite accounting for less than one-third of total sales. Nevertheless, this is adequate for the company to rank among the largest defense contractors.

Aviation-based offerings dominate Boeing’s defense portfolio. Missiles production and a sizable space business are among Boeing’s other specialties. Moreover, the company has emerged as a trailblazer in drones and other self-governing systems.

However, Boeing is not a hot stock. The aerospace giant is up just 4% since the start of the year. However, their drone subsidiary division, Insitu, is gaining ground in early 2023. Regarding drone technology, do not be deceived by this short-term setback.

Boeing’s air reconnaissance ScanEagle aircraft and the Boeing MQ-25 Stingray are generating interest, which accomplished an industry first by refueling a U.S. Navy aircraft in midair.

Overall, Boeing’s expertise in defense and innovative advancements in aerospace technology will continue to be influential.

And if you want to continue reading about blue-chip companies like Boeing, check out this great article.

AeroVironment (AVAV)

AeroVironment (NASDAQ:AVAV), a military contractor based in Arlington, Virginia, is seeing very healthy interest this year.

The stock is up almost 19% at press time, and the momentum will not slow. AeroVironment is emerging as an important geopolitical company during these times.

AVAV benefits from the ongoing Russia-Ukraine conflict as there is increased demand for their products, which play an essential role in Ukraine’s defense. The company expects to capitalize on these opportunities and help prepare the U.S. and its allies for the future with their products.

President Joe Biden has announced that the U.S. would aid Ukraine with $800 million, providing ammunition, body armor, antiaircraft systems, and grenade launchers. Reports suggest the package will include 100 tactical unmanned aerial systems, possibly including AeroVironment’s Switchblade 300 and 600 models.

AeroVironment’s annual revenue increased by just 13% from fiscal 2018 to 2021, making the news potentially beneficial for its much-needed growth. The sales of high-value Switchblades could be instrumental in boosting the figure for fiscal 2022. Multiple defense-related stocks have experienced a surge in the market since the invasion started.

In summary, AeroVironment is a great company to diversify your holdings when searching for drone stocks. Although the bigger players get more headlines, this one is also steadily gaining altitude.

And if you want to continue reading about this company, here is a great list with more info.

On the publication date, Faizan Farooque did not hold (directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.