Drone Stocks Rise After Defense Secretary Hegseth Announces Drone Surge

Zinger Key PointsThe Pentagon authorizes commanders to procure and test small drones as “consumable weapons.”All military branches are directed to run drone combat simulations and expand testing with the FAA.Get daily-updated rankings across momentum, growth, value, trends, and quality to spot the strongest stocks in any market.Shares of drone stocks are trading higher after Secretary of DefensePete Hegsethannounced efforts tofast-track drone production.What To Know:Hegseth signed a directive that allows military commanders at the rank of colonel or Navy captain and above to independently procure and test small drones—specifically Group 1 and Group 2 unmanned aircraft systems.These drones will now be treated as "consumable weapons," removing them from traditional aircraft tracking systems and enabling quicker fielding of technology, including 3D-printed and commercial off-the-shelf systems.The order rescinds several legacy Pentagon policies that Hegseth said have held back innovation and directs all branches of the military to conduct drone combat simulations. It also mandates coordination with the Federal Aviation Administration to expand approved flight ranges, speed up spectrum approvals, and create new test areas focused on swarm tactics, live-fire exercises, and combined-arms scenarios."The Department's bureaucratic gloves are coming off," Hegseth said. He added that under President Trump's leadership, drone lethality "will not be hindered by self-imposed restrictions."Some drone stocks trading higher, includeRed Cat Holdings, Inc.,AeroViroment, Inc.AVAV, andKratos Defense & Security Solutions, Inc.KTOS.Price Action:At the time of writing, Red Cat shares are trading 23.3% higher at $8.36, AreoVironment stock is trading 9.88% higher at $261.05 and Kratos stock is trading 11.7% higher at $51.69, according to data fromBenzinga Pro.Loading...Loading...AVAVAeroVironment Inc$262.2910.4%Stock Score Locked: Edge Members OnlyBenzinga Rankings give you vital metrics on any stock – anytime.Unlock RankingsEdge RankingsMomentum88.39Growth90.94Quality9.94Value8.57Price TrendShortMediumLongOverviewKTOSKratos Defense & Security Solutions Inc$51.6911.7%RCATRed Cat Holdings Inc$8.2822.1%Market News and Data brought to you by Benzinga APIs© 2025 Benzinga.com. . .Posted In:NewsMoverswhy it's moving